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Q. A common marketing tactic among many liquor stores is to offer their clientele quantity (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 among purchasing this brand of wine also other goods, graphically illustrate Elucidate 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? Elucidate.
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