Explore BrainMass

Explore BrainMass

    Budget Lines/Indifference Curves

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A consumer decides not to buy a DVD player when her income is $20,000. However, when her income rised to $30,000, she decides to buy one. In a single diagram, draw the budget lines and indifference curves to illustrate this situation (assume the DVD costs $300 in both time periods). Be sure to label the diagram completely. Hint: Place DVD players on the horizontal axis and "other goods" on the vertical axis.

    © BrainMass Inc. brainmass.com March 4, 2021, 6:24 pm ad1c9bdddf
    https://brainmass.com/economics/personal-finance-savings/budget-lines-indifference-curves-43528

    Solution Preview

    See the attached file.

    A consumer decides not to buy a DVD player when her income is $20,000. However, ...

    Solution Summary

    The solution determines the budget lines/indifference curves.

    $2.49

    ADVERTISEMENT