Centa spends $56 a month at allthemovies.com on film-noir (FN) and sci‑fi (SF) movies, which typically cost $14 each. The first graph shows her budget constraint and her optimal consumption at point A. This month, SF movies are on sale for $7. On the first graph, draw the new budget constraint by moving one or both endpoints of the original budget constraint. Points B, C, D, and E indicate possible consumption bundles. Assume that FN movies are still $14 each. Budget Constraint and Optimal ConsumptionQuantity of FN moviesQuantity of SF movies012345678910012345678910BCBCDEA On the second graph, draw Centa's individual demand curve for SF movies from a price of $14 to a price of $7. Do not continue the line past these points to the axes. Individual Demand for SF MoviesPrice of SF moviesQuantity of SF movies01234567891001234567891011121314demand As with Centa's demand for SF movies, the law of demand states that price and quantity demanded are not correlated. perfect substitutes. positively correlated. negatively correlated.
Centa spends $56 a month at allthemovies.com on film-noir (FN) and sci‑fi (SF) movies, which typically cost $14 each. The first graph shows her budget constraint and her optimal consumption at point A. This month, SF movies are on sale for $7. On the first graph, draw the new budget constraint by moving one or both endpoints of the original budget constraint. Points B, C, D, and E indicate possible consumption bundles. Assume that FN movies are still $14 each. Budget Constraint and Optimal ConsumptionQuantity of FN moviesQuantity of SF movies012345678910012345678910BCBCDEA On the second graph, draw Centa's individual demand curve for SF movies from a price of $14 to a price of $7. Do not continue the line past these points to the axes. Individual Demand for SF MoviesPrice of SF moviesQuantity of SF movies01234567891001234567891011121314demand As with Centa's demand for SF movies, the law of demand states that price and quantity demanded are not correlated. perfect substitutes. positively correlated. negatively correlated.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Centa spends $56 a month at allthemovies.com on film-noir (FN) and sci‑fi (SF) movies, which typically cost $14 each. The first graph shows her budget constraint and her optimal consumption at point A. This month, SF movies are on sale for $7.
On the first graph, draw the new budget constraint by moving one or both endpoints of the original budget constraint. Points B, C, D, and E indicate possible consumption bundles. Assume that FN movies are still $14 each.
Budget Constraint and Optimal ConsumptionQuantity of FN moviesQuantity of SF movies012345678910012345678910BCBCDEA
On the second graph, draw Centa's individual demand curve for SF movies from a price of $14 to a price of $7. Do not continue the line past these points to the axes.
Individual Demand for SF MoviesPrice of SF moviesQuantity of SF movies01234567891001234567891011121314demand
As with Centa's demand for SF movies, the law of demand states that price and quantity demanded are
not correlated.
perfect substitutes.
positively correlated.
negatively correlated.
Expert Solution
Step 1
A budget constraint refers to the different combinations of two goods that a consumer can afford with the current income or the budget available to that consumer.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education