How is the budget constraint affected

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It is now enacted by law - at the request of the National Board of Health - that a maximum of 5 beers can be bought (drink) a day. How is the budget constraint affected?

Following major protests against the law in (c) a new law is adopted instead, which increases the unit price of beer by DKK 4 for the beer purchased in addition to the first 5 beers a day. How is the budget constraint affected?

The economy is suffering from hyperinflation and all prices and incomes have grown by 100%. How is the budget constraint affected? (Based on prices and income given at the beginning of the assignment)

 

Reference no: EM133380693

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