Micro question

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Micro question

Radhika Sahni
Central High School has $60,000 to spend on comp. and other stuff, so the budget constarint is C+X=60,000. where C is expd on comps. and X is expd. on other goods. The school currently plans to spend 20,000 on computers.
To promote computer education following plans were proposed:
A: This plan gives a grant of 10000 to each high school in the state that the school could spend as it wished.
B: This plan gives 10000 grant to any high school, so long as the school spent at least 10000 more than it currently spends on compts. Any school can choose not to participate, in which case it does not receive the grant, but it doesn't have to increase its expd. on comp.
C:Plan C is a 'matching grant'. For every dollar's worth of computers that a high school orders, state will give the chool 50 cents.
D:This plan is like plan C, except that the max amt of matching funds that any high school could get from the state would be limited to $10000.

-If plan B is adopted the boundary of school's budget set has 2 separate downward sloping line segments. One of these segments describes the cases whereschool spends at least $30000 on compts. Another, line segmnet corresponds to the case where school spends less than 30000 on compts. This line segment(2nd one) runs from (C,X)______to the point (C,X) = 70,000.

Fill in the blank.
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Re: Micro question

Asd1995
If the school spends more than 30k on computers, budget line becomes C plus X=70K

If it spends less than 30k on computers, meaning it will not get a grant budget line changes to C plus X=60k

The second line runs from c,x=30,30 to c,x=0,60

Apologies for the awkward notations
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Re: Micro question

Halflife
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