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Question: brian consumes units of electricity e and a composite good...

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Brian consumes units of electricity (E) and a composite good (Y), whose price is always 1. he likes both goods. in period 1 the power company sets the price of electricity at $7 per unit, for all units of electricity consumed. Brian consumes his optimal basket, 20 units of electricity and 70 units of the composite good. in period 2 the power company then revises its pricing plan, charging $10 per unit for the first 5 units and $4 per unit for each additional unit. Brians income in unchanged. Brians optimal basket with this plan includes 30 units of electricity and 60 units of the composite good. in period 3 the power company allows the consumer to choose either the pricing plan in period 1 or the plan in period 2. Brians income in unchanged. which pricing plan will he choose? illustrate you answer with a clearly labeled graph.

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