Question: Homework help with question e&f Consider a consumer facing the following budget constraint: $20, if 05x53 That is. every unit of good x up to

Homework help with question e&f

constraint: $20, if 05x53 That is. every unit of good x up

to 3 costs $20, and every unit in excess costs $1. (a)

Assume this consumer's income is $80. What is their budget constraint? (e)

Consider a consumer facing the following budget constraint: $20, if 05x53 That is. every unit of good x up to 3 costs $20, and every unit in excess costs $1. (a) Assume this consumer's income is $80. What is their budget constraint? (e) Is this optimal bundle the solution for the problem with the two-steps budget constraint? Explain your answer. (Points: 12/50) (1") (Extra Credit) Solve the problem and provide the optimal bundle. (Extra Points: 10/100)

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