1 2 Quantity of Books Suppose the solid line in the graph above illustrates Michael's budget line. Which of the following statements are correct regarding Michael's budget line: Michaela could afford to buy 8 movie tickets and 1 book. if Michaela's income is $40, the price of movie tickets must be $4. if Michaela's income is $80, the price of books must be $80. if Michaela's income is $80, the price of movie tickets must be $12. None of these options are correct. Quantity of Movie Tickets

1 2 Quantity of Books Suppose the solid line in the graph above illustrates Michael's budget line. Which of the following statements are correct regarding Michael's budget line: Michaela could afford to buy 8 movie tickets and 1 book. if Michaela's income is $40, the price of movie tickets must be $4. if Michaela's income is $80, the price of books must be $80. if Michaela's income is $80, the price of movie tickets must be $12. None of these options are correct. Quantity of Movie Tickets

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose Alex has income of $100 per month. He only consumes pizza and cell phone minutes. Illustrate Alex's budget constraint under each of the following conditions. a. Pizzas cost $10 each and cell phone service cost $0.10 per minute. b. Alex's service provider offers a quantity discount. After the first 600 minutes, the price per minute drops to $0.05. c. Alex's parents decide that he is not allowed to use more than 600 minutes of cell time per month. d. Under Alex's parents dictate, does he ever consume less than 4 pizzas? How do you know? e. Is it possible that without the mandate from his parents but with the discount phone plan available that Alex would ever consume less than 600 minutes of cell time per month? If so, why and if not why not? 1
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Q8. Jacob's favorite activities are going to baseball games and going to the theater. Jacob's budget for these activities is $600. A ticket to a baseball game costs $15 and a ticket to the theater costs $60. a. Graph Jacob's budget constraint. b. Calculate the slope of Jacob's budget constraint c. How many t total baseball games can Jacob attend if he visits the theater six times? d. Suppose Jacob receives $300 in cash for his birthday and he decides to put all of this money toward his entertainment budget. Draw Jacob's new budget constraint. e. If Jacob now decides to visit the theater ten times, how many baseball games can he attend?
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