# Normal and Inferior Goods**Scenario:**Becky enjoys both going to baseball games and attending symphony orchestra performances. The diagram below illustrates two of Becky's indifference curves, which represent her preferences for these two activities, along with her budget constraints.**Initial Situation:**- With the initial budget constraint $ BC_1 $, Becky can afford to attend four symphonies and four baseball games per month, represented by point $ X $.**Shift in Budget Constraint:**- The budget constraint shifts to $ BC_2 $, allowing Becky to choose point $ Y $, where she attends five symphonies and five baseball games per month.**Graph Explanation:**- The graph displays the number of symphonies on the x-axis and the number of baseball games on the y-axis.- Two indifference curves, $ I_1 $ and $ I_2 $, are drawn to show Becky's preferences.- The budget constraint lines $ BC_1 $ and $ BC_2 $ represent Becky's spending limits before and after a change in her budget.**Multiple Choice Question:**Of the following choices, which could have shifted Becky's budget constraint from $ BC_1 $ to $ BC_2 $? (Check all that apply.)1. Her income increased while the prices of baseball and symphony tickets stayed the same.2. The prices of both baseball and symphony tickets decreased while her income stayed the same.3. The price of baseball tickets increased while her income and the price of symphony tickets stayed the same.4. The prices of both baseball and symphony tickets increased while her income stayed the same.**Conclusion:**Based on Becky’s consumption after the shift, categorize the goods:- Baseball games are [Select: Normal/Inferior] goods.- Symphonies are [Select: Normal/Inferior] goods.

An indifference curve shows the various combinations of two goods that give the consumer equal…

Becky likes going to the ballpark to watch baseball, and she also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Becky's indifference curves for going to ballgames and symphonies. With Becky's initial budget constraint (BC₁), she chose to go to four symphonies and four baseball games per month (point X). Then her budget constraint shifted to BC₂, and she chose to go to five symphonies and five ballgames per month (point Y). BALLGAMES SYMPHONIES of the following choices, which could have shifted Becky's budget constraint from BC to BC₂? Check all that apply. Her income increased while the prices of baseball and symphony tickets stayed the same. The prices of both baseball and symphony tickets decreased while her income stayed the same. The price of baseball tickets increased while her income and the price of symphony tickets stayed the same. The prices of both baseball and symphony tickets increased while her income stayed the same. Based on Becky's consumption of ballgames and symphonies after her budget constraint shifted, ballgames are goods. are goods and symphonies

Becky likes going to the ballpark to watch baseball, and she also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Becky's indifference curves for going to ballgames and symphonies. With Becky's initial budget constraint (BC₁), she chose to go to four symphonies and four baseball games per month (point X). Then her budget constraint shifted to BC₂, and she chose to go to five symphonies and five ballgames per month (point Y). BALLGAMES SYMPHONIES of the following choices, which could have shifted Becky's budget constraint from BC to BC₂? Check all that apply. Her income increased while the prices of baseball and symphony tickets stayed the same. The prices of both baseball and symphony tickets decreased while her income stayed the same. The price of baseball tickets increased while her income and the price of symphony tickets stayed the same. The prices of both baseball and symphony tickets increased while her income stayed the same. Based on Becky's consumption of ballgames and symphonies after her budget constraint shifted, ballgames are goods. are goods and symphonies

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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