Shabadashawama
New member
I'm having a bit of trouble with this budget constraint problem because I'm missing the second good, here's the problem:
Suppose a consumer has $120 dollars to spend on dvd's. Best Buy is running a sale where dvd's cost $20, but if you buy two you get a third for free. Sketch the consumer's budget constraint. Put the number of dvd's on the x-axis and the money that te consumer spends on all other goods on the y-axis.
Suppose a consumer has $120 dollars to spend on dvd's. Best Buy is running a sale where dvd's cost $20, but if you buy two you get a third for free. Sketch the consumer's budget constraint. Put the number of dvd's on the x-axis and the money that te consumer spends on all other goods on the y-axis.