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Unformatted text preview: Cloth (C) and masking tape (T). They get their goods from two competing stores, Store A and Store B, both of which sell the goods only bundled together. In neither store can tape and cloth be bought separately. If they spend all of their income at Store A, they can buy 10 units of cloth and 5 rolls of masking tape. If they spend all of their income at Store B, they can buy 5 units of cloth and 10 rolls of masking tape. a. Draw Christo and Jeanne-Claudes budget constraint on the following graph. Label carefully. T M b. This budget line is a line segment that lies on the line with what equation? c. If Christo and Jeanne-Claude have a positive income, what is the opportunity cost of consuming an additional unit of masking tape? Explain this concept....
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