Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

تمرين 4

Suppose that an electric company charges consumers $.10 per kilowatt hour for electricity for the first 1,000 used in a month but $.15 for each extra kilowatt hour after that. Draw the budget constraint for a consumer facing this price schedule, and discuss why many individuals may choose to consume exactly 1,000 kilowatt hours.