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.
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