Question

Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing $25 each and the movie tickets start off costing $10 each. For each of the following situations, would the attainable set of combinations that you can afford increase or decrease? a. Your budget increases from $100 to $150 while the prices stay the same: Cick to selecto b. Your budget remains $100, the price of books remains $25, but the price of movie tickets rises to $20 c. Your budget remains $10 the price of movie tickets remains $10, but the price of a book falls to $15: 3.44 points ICick to sect) C : Print

Answer 1

a. increase in light of the fact that a bigger spending plan enables you to buy not just the mixes that you could bear the cost of previously yet additionally new blends that you couldn't manage the cost of previously (for instance, you would now be able to stand to buy 4 books and 5 movie tickets);

b. decrease in light of the fact that specific mixes are never again reasonable (for instance, you can never again buy 10 movie tickets with your $100 spending plan);

c. increase on the grounds that the lower cost enables you to buy mixes that you couldn't manage the cost of previously (for instance, you would now be able to buy 6 books and 1 movie ticket)].