In the United States,some state governments set tiered prices for electricity.These tiered prices lead to budget lines that are:
A) upward-sloping.
B) kinked.
C) horizontal at a specific level of electricity consumption.
D) vertical at a specific level of electricity consumption.

Question

Quizplus · Accepted Answer

Tiered pricing leads to a kinked budget line because the price of electricity changes abruptly at certain consumption levels, creating a break in the slope of the budget line. For example, at a certain level of consumption, the price may increase significantly, causing the budget line to become steeper.

In the United States,some State Governments Set Tiered Prices for Electricity.These