Mathematics, 26.06.2021 20:40 denisturcios18
1. 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 consurne exactiy 1,000 kilowatt hours.
Answers: 2
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