In order to encourage energy conservation, many public utility companies charge consumers a higher rate on units of electricity consumed in excess of some threshold amount. in contrast, a common marketing ploy by other firms is to offer "quantity discounts" to consumers who purchase large quantities of a good. to illustrate how these pricing schemes alter the typical consumer's opportunity set, suppose income = $100, px = $2 if the consumer buys less than 40 units of x, px = $3 if the consumer buys more than 40 units of x, and py = $5. draw the budget constraint. how would the budget constraint change if the price decreased to $1 after 40 units of x were consumed?

ATTACHED ANSWER

Explanation:

The budget constrain will show all the possible consumption considering the price of both product X and product Y

We have to calculate at X = 0 X = 40 and Y = 0

if X = 0 this means we don't buy any product X so is all used to purchase Y 100/5 = 20 units

at 40 units of X we got 40 x 2 = 80 dollars leaving 20 for Y therefore 20/5 = 4

At X = 40 and Y = 4 we find the other budget constrain

Last if Y = 0

if the mass consumption of X is penalized we consume 20/3 = 6.67 more units leading to 46.67

while if it is encourage we consume 20/1 = 20 more units

leading to 60 units in total

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.