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 Joan’s budget is given by the solid blue and red segments—there is a jump discontinuity at x = 10 . 20 30 25 15 10 5 20 15 10 Pies Champagne 5...
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- Summer '07
- Microeconomics, Shomu Banerjee ECON, red budget line