Spend on bagels and other goods throughout the year

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Reference no: EM13859944

The Einstein Bagel Corp. has used a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $6. After a consumer accrues 10 stamps, she receives one dozen bagels free. This offer is an unlimited offer, valid throughout the year. The manager knows her products are normal goods. Given this information, construct the budget set for a consumer who has $200 to spend on bagels and other goods throughout the year.

Instruction: If the opportunity set has any kinks, be sure to plot all the points where the kinks occur. Graph the budget set from where Bagels (in dozens) = 0 to where Bagels (in dozens) = 32.

PLEASE INCLUDE ALL THE POINTS

Reference no: EM13859944

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