Alex distributes his monthly income of $600 between two goods, movies and food. By spending his entire income on movies, he can enjoy a maximum of 20 movies. On the other hand, by spending his entire income on food he can consume a total of 60 units of food. Assume
Alex distributes his monthly income of $600 between two goods, movies and food. By spending his entire income on movies, he can enjoy a maximum of 20 movies. On the other hand, by spending his entire income on food he can consume a total of 60 units of food. Assume
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...
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![Alex distributes his monthly income of $600
between two goods, movies and food. By
spending his entire income on movies, he can
enjoy a maximum of 20 movies. On the other
hand, by spending his entire income on food he
can consume a total of 60 units of food. Assume
that food consumption is measured along the
horizontal axis and the consumption of movies is
measured on the vertical axis. Calculate the slope
of Alex's budget line when the price of food
increases to $20 while the price of movie remains
unchanged.
-2/3
- 1.5
-2
-3/4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd0047c0-0a1b-4fd0-b152-161f26385fed%2Fd016b569-4502-4f25-b355-6a569a389bc1%2Fraoptlks_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Alex distributes his monthly income of $600
between two goods, movies and food. By
spending his entire income on movies, he can
enjoy a maximum of 20 movies. On the other
hand, by spending his entire income on food he
can consume a total of 60 units of food. Assume
that food consumption is measured along the
horizontal axis and the consumption of movies is
measured on the vertical axis. Calculate the slope
of Alex's budget line when the price of food
increases to $20 while the price of movie remains
unchanged.
-2/3
- 1.5
-2
-3/4
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