Asked by Amneesh Rehal on Jun 09, 2024

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The local farmer's market sells corn for 20 cents an ear. At this price, Sam buys 6 ears each Thursday. What would happen to Sam's consumption of corn if the market offered corn at 20 cents an ear for the first 6 ears, but 10 cents an ear for each additional ear? Explain your answer.

Indifference Curves

Graphical representations in microeconomics illustrating combinations of various goods between which a consumer is indifferent.

Consumption Bundle

A specific collection of goods and services consumed by an individual or household.

Farmer's Market

A marketplace where farmers sell their produce directly to consumers, often featuring fresh, locally grown fruits, vegetables, meats, and other products.

  • Examine the implications of income changes on consumption patterns.
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Sharma PratimaJun 13, 2024
Final Answer :
Sam's budget constraint would now exhibit a "kink" at 6 ears of corn due to the change in the price per ear for high-quantity purchases. From the following figure, we can see that Sam would buy more corn. Sam's budget constraint would now exhibit a kink at 6 ears of corn due to the change in the price per ear for high-quantity purchases. From the following figure, we can see that Sam would buy more corn.