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Unformatted text preview: Similarly, the red line shows the budget if p y = $5/bottle and p x is $4/pie for all units of x purchased. Since this is true only for x more 10, the upper portion of the red budget line does not apply and is therefore shown with dashes. Therefore Joans budget is given by the solid blue and red segmentsthere is a jump discontinuity at x = 10 . 20 30 25 15 10 5 20 15 10 Pies Champagne 5...
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This note was uploaded on 10/26/2010 for the course ECONOMICS ECON 201 taught by Professor Dr.shomubanerjee during the Summer '07 term at Emory.
- Summer '07