Kevin likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The followingdiagram shows two of Kevin's indifference curves for going to ballgames and symphonies. With Kevin's initial budget constraint (BC1), he chose to goto five symphonies and five baseball games per month (point X). Then his budget constraint shifted to BC2, and he chose to go to four symphoniesand four ballgames per month (point Y).BALL GAMES810I II I4 5SYMPHONIESBCBCB10Of the following choices, which could have shifted Kevin's budget constraint from BC₁ to BC2? Check all that apply.The price of symphony tickets increased while his income and the price of baseball tickets stayed the same.His income increased while the prices of baseball and symphony tickets stayed the same.The prices of both baseball and symphony tickets increased while his income stayed the same.His income decreased while the prices of baseball and symphony tickets stayed the same.Based on Kevin's consumption of ballgames and symphonies after his budget constraint shifted, ballgames aregoods.aregoods and symphonies

Budget constraint is the equation that shows how the income of the consumer puts a constraint on the…

Kevin likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Kevin's indifference curves for going to ballgames and symphonies. With Kevin's initial budget constraint (BC1), he chose to go to five symphonies and five baseball games per month (point X). Then his budget constraint shifted to BC2, and he chose to go to four symphonies and four ballgames per month (point Y). BALLGAMES 10 10 5 4 5 SYMPHONIES BC BC B 10 Of the following choices, which could have shifted Kevin's budget constraint from BC to BC2? Check all that apply. The price of symphony tickets increased while his income and the price of baseball tickets stayed the same. His income increased while the prices of baseball and symphony tickets stayed the same. The prices of both baseball and symphony tickets increased while his income stayed the same. His income decreased while the prices of baseball and symphony tickets stayed the same. Based on Kevin's consumption of ballgames and symphonies after his budget constraint shifted, ballgames are goods. are goods and symphonies

Kevin likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Kevin's indifference curves for going to ballgames and symphonies. With Kevin's initial budget constraint (BC1), he chose to go to five symphonies and five baseball games per month (point X). Then his budget constraint shifted to BC2, and he chose to go to four symphonies and four ballgames per month (point Y). BALLGAMES 10 10 5 4 5 SYMPHONIES BC BC B 10 Of the following choices, which could have shifted Kevin's budget constraint from BC to BC2? Check all that apply. The price of symphony tickets increased while his income and the price of baseball tickets stayed the same. His income increased while the prices of baseball and symphony tickets stayed the same. The prices of both baseball and symphony tickets increased while his income stayed the same. His income decreased while the prices of baseball and symphony tickets stayed the same. Based on Kevin's consumption of ballgames and symphonies after his 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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Andrea has a budget of £21 to spend on toothbrushes and tooth paste. He does not receive any utility from owning a toothbrush, but for the consumption of every tube of tooth paste he gains a utility of 2 utils – but only if he owns a tooth brush. Without a tooth brush, Andrea gains no utility from consuming tooth paste. In addition, after consuming 10 tubes of tooth paste, a toothbrush needs to be replaced, i.e., Andrea needs to buy a new one. The current price of tooth brushes on the market is £5 and the current price for tooth paste is £1 per tube. Assume that Andrea aims to maximise consumer surplus. Question：Find Andrea’s income-consumption curve for tooth paste tubes for incomes between £0 and £21, assuming a price of £1 per tube.
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