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Budget constraints. (6 points) GLS, Ch4 P11. (Edition 1, GLS, Ch4 P12.) Suppose that only one person in the world sells ice cream. He employs a strange pricing policy: You can buy 1 ice cream cone for...

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Budget constraints. (6 points) GLS, Ch4 P11. (Edition 1, GLS, Ch4 P12.) Suppose that only one person in the world sells ice cream. He employs a strange pricing policy: You can buy 1 ice cream cone for $1, but if you buy 2 cones, you have to pay $2 each. If you buy 3, you have to pay $3 each, etc., so that if you buy 10, you have to pay $10 each. You have $100 dollars to spend on ice cream cones and chocolate milk, and chocolate milk costs $1 per unit. Draw your budget constraint. This strange ice cream pricing, where buying more costs you more, is called a quantity surcharge.
Answered Same Day Dec 25, 2021

Solution

David answered on Dec 25 2021
114 Votes
Solution
The respective equation for the budget constraint can be highlighted
elow:
Budget constraint =
Given values
After putting all values in the budget constraint equation
( ) ( )
Budget constraint
100
Chocolate milk
(C)
...
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