Draw the budget constraint-union introduces scheme

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Reference no: EM131167433

The Students Union introduces the following scheme: Students can buy a Caffeine Addict card for $50, which entitles them to a 25% discount on the price of coffee sold at the cafeteria. With coffee on the horizontal axis and income on the vertical, (i) Draw the budget constraint of a student who buys such a card before and after the scheme is introduced. (ii) On a separate diagram, show the equilibrium of a student who is indifferent between buying the card or paying the standard price.Label ALL intercepts and please be NEAT!

Reference no: EM131167433

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