The Budget Set and Its Algebra

The constraint written down

Pivots and shifts

Taxes, subsidies and numeraires

Kinks from real tariffs

With income 100, prices $p_1 = 2$ and $p_2 = 5$, what does the budget line's slope of $-\frac{2}{5}$ tell you?

A lump-sum income tax is levied. How does the budget line move, and how does that differ from a per-unit tax on good one?

If both prices and income double, what happens to the budget set?

In the two-tier electricity budget, flat at slope $-\frac{2}{3}$ up to 15 units then slope $-\frac{4}{3}$, why might a consumer locate exactly at the kink?

With $m = 100$, $p_2 = 5$, and $p_1$ rising from 2 to 4, compute the new horizontal intercept of the budget line, and write the number.

In the two-tier budget with $m = 60$, $p_2 = 3$, first 15 units at $p_1 = 2$ then $p_1 = 4$, compute the horizontal intercept of the steep segment, and write the number.

With income 100 and prices 2 and 5, what are the two axis intercepts of the budget line?

How do a lump-sum income tax and a per-unit tax on good one move the budget line differently?

If good two is declared the numeraire with p2 set to one, what changes and what does not?

In the two-tier budget with m of 60, p2 of 3, first 15 units of good one at 2 then 4, what is the kink bundle?

After the cheap tier of 15 units, compute how many more units of good one the remaining 30 dollars buy at price 4, and write the number with one decimal.

With m of 100, p1 of 2 and p2 of 5, compute the cost of the bundle (25, 10), and write the number.