The Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a stamp each ti 1 answer below »

The Einstein Bagel Corp. offers a frequent buyer program whereby a consumer receives a stamp each time she purchases one dozen bagels for $6. After a consumer accrues 10 stamps, shereceives one dozen bagels free. This offer is an unlimited offer, valid throughout the year. Themanager knows her products are normal goods. Given this information, construct the budget setfor a consumer who has $200 to spend on bagels and other goods throughout the year.Does Einstein’s frequent buyer program have the same effect on the consumption of its bagelsthat would occur if it simply lowered the price of one dozen bagels by 3 percent? Explain.I know the answer is the 3% discount however it does not make sense to me.if the price stays at $6 then that would be 33 dozen which he would also get three free dozen which puts him at 36 dozen. if the price is lowered by 3% then that makes it $5.82 which allows the consumer to purchase 34 dozen. which makes me want to put the first idea consumes more donuts. Am I missing a step here.

 

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