Budget

[gary_]

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 composite y or income on the vertical.
Draw the budget constraint of a student who buys such a card before and after the scheme is introduced.

How does the budget constraint looks like? What are its intercepts?

 

[tkhunny]

I'm trying really hard to make sense of this question. It's not coming to me. Better information? Perhaps you could demonstrate your understaing of some associated principle?

 

[Denis]

Methinks you need another coffee, gary :wink: