Under the buy one,get one free regime,the:
A) budget line rotates counterclockwise.
B) price is reduced by 50 percent.
C) budget set expands.
D) indifference curve is changed.

Question

Quizplus · Accepted Answer

Under a buy one, get one free regime, consumers can obtain more goods for the same amount of money, effectively expanding their budget set. This means they can reach higher levels of consumption without increasing their spending, unlike changes to the budget line's slope (rotation) or changes to preferences (indifference curves). The price per unit effectively decreases, but this is represented in the expansion of the budget set rather than a direct 50% price reduction on all units or a change in the slope of the budget line.

Under the Buy One,get One Free Regime,the