Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post

the-rasta-masta · 09-29-2009, 02:15 AM

I have this assignment due tomorrow in Econ 301, and for some reason the second question is just absolutely puzzling me. It seems relatively straight forward, so maybe I am just overthinking it. The question is as follows:

A consumer decides not to buy a DVD player when her income is $20,000; when her income rises to $30,000, she decides to buy one. In a single diagram, draw the budget lines and indifference curves to illustrate this situation. Assume a DVD player costs $300 in both time periods. Label your diagram completely.

Can anybody guide me in the right direction? Any help would be much appreciated.

09-29-2009, 02:15 AM	#1
the-rasta-masta First Line Centre Join Date: Oct 2002 Location: Turner Valley Exp:	Any Econ majors still up? Econ 301 help! I have this assignment due tomorrow in Econ 301, and for some reason the second question is just absolutely puzzling me. It seems relatively straight forward, so maybe I am just overthinking it. The question is as follows: A consumer decides not to buy a DVD player when her income is $20,000; when her income rises to $30,000, she decides to buy one. In a single diagram, draw the budget lines and indifference curves to illustrate this situation. Assume a DVD player costs $300 in both time periods. Label your diagram completely. Can anybody guide me in the right direction? Any help would be much appreciated.