Description of this paper

George has an entertainment budget of $120 per month

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solution


Question

George has an entertainment budget of $120 per month and he spends it either on opera tickets at $10 each or on theater tickets at $6 each.;1) Say theater tickets prices fall, first to $4 each, then $3 each, then $2, ceteris paribus. Graph the four budget, with the theater tickets on the horizontal axis;2)Suppose his demand curve for theater tickets is characterized by Q=60-10P, where P is the ticket price. Show graphically;a) his demand curve for theather tickets;b) the specific point chosen on the budget constraint(s) corresponding to each price combination.

 

Paper#28926 | Written in 18-Jul-2015

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