Question: Original Budget Constraint Equation: 2a + 2b = 100; A -> Bread B -> Wine pA -> $2 pB -> $2 Suppose the government wants

Original Budget Constraint Equation: 2a + 2b = 100;

A -> Bread

B -> Wine

pA -> $2

pB -> $2

Suppose the government wants consumers to conserve bread, so it increases the price of bread to $4 for each additional loaf over 25 loaves. In other words, 26 loaves of bread will cost a consumer225+14=$54

.

Draw the budget constraint. What is the area under the new budget constraint?

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