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"A common marketing tactic among many liquor stores is to offer their clientele quantitiy (or volume) discounts.

"A common marketing tactic among many liquor stores is to offer their clientele quantitiy (or volume) discounts. For instance, the second-leading brand of wine exported from Chile sells in the US for $8 per bottle if the consumer purchases up to 8 bottles. The price of each additional bottle is only $4. If a consumer has $100 to divide between purchasing this brand of wine and other goods, graphically illustrate how this marketing tactic affects the consumer's budget set if the price of other goods is $1. Will a consumer ever purchase exactly 8 bottles of wine? Explain."

Please read the question carefully as I believe it requires a graph that shows a kinked demand curve with y intercept at 100 going down to point (37/8) and then kinking out to 17; indicating that the customer can't buy exactly 8 bottles.

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A common marketing tactic among many liquor stores is to offer their clientele quantitiy (or volume) discounts. For instance, the secondleading brand of wine exported from Chile sells in the US for...

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