What quantities will there be kink in the budget constraint

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Reference no: EM131244604

Suppose Lori has an income of $100 to spend on chocolate bars and ice-cream cones. She faces a price of$1 for chocolate bars. However, the price of ice-cream depends on how much you buy. The first 10 icecream cones cost Lori $2 each, but each cone after that is $0.50 each. Draw the budget constraint wherechocolate bars are on the vertical axis and ice-cream cones are] on the horizontal axis. Clearly indicate at what quantities will there be a kink in the budget constraint.

Reference no: EM131244604

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