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40. Suppose cawlin has a budget of $90 that he spends on movies Q1 and roller skating Q2. The price of movie tickets recently increased from $6 per person to $9 per person, and the price of roller skating decreased from $6 to $5 per person. What is cawlins new budget contraint?

Question 40 Suppose Cawlin has a budget of $90 that he spends on movies (Q1) and roller skating (Q2). The price of movie tick
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Answer #1

Consumer mainly have total income of 90 dollars .

As per the given question , Consumer spend his income on two goods i.e Movies and roller skating

Movies is represented as Q1 and Roller skating is represented as Q2 .

When the price of movie = 6 dollar

price of roller skating is also 6 dollar

So , the budget constraint will be 6 Q1+ 6 Q2 = 90

   so the prices of movies increases from 6 to 9 dollars

   and also the prices of roller skating decreases from 6 to 5 dollars

   So the new budget constraint in this case will be   

9 Q1 + 5 Q2 = 90

  

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