Lorenzo enjoys going to the theater to see plays, and he also enjoys going to rock concerts. The following diagram showstwo of Lorenzo's indifference curves for going to plays and concerts. With Lorenzo's initial budget constraint (BC1), hechose to go to five concerts and three plays per month (point X). Then his budget constraint shifted to BC2, and he choseto go to four concerts and six plays per month (point Y).PLAYS10045CONCERTSBC8Show Transcribed TextBC10COf the following choices, which could have shifted Lorenzo's budget constraint from BC₁ to BC₂? Check all that apply.The price of theater tickets increased while his income and the price of concert tickets stayed the same.His income decreased while the prices of theater and concert tickets stayed the same.His income increased while the prices of theater and concert tickets stayed the same.The prices of both theater and concert tickets decreased while his income stayed the same.Based on Lorenzo's consumption of plays and concerts after his budget constraint shifted, plays are (inferior, or normal)?goods and concerts are (inferior or normal)? goods.

The indifference curve represents the different combinations of two commodities that provide the…

Lorenzo enjoys going to the theater to see plays, and he also enjoys going to rock concerts. The following diagram shows two of Lorenzo's indifference curves for going to plays and concerts. With Lorenzo's initial budget constraint (BC1), he chose to go to five concerts and three plays per month (point X). Then his budget constraint shifted to BC2, and he chose to go to four concerts and six plays per month (point Y). PLAYS 10 3

Lorenzo enjoys going to the theater to see plays, and he also enjoys going to rock concerts. The following diagram shows two of Lorenzo's indifference curves for going to plays and concerts. With Lorenzo's initial budget constraint (BC1), he chose to go to five concerts and three plays per month (point X). Then his budget constraint shifted to BC2, and he chose to go to four concerts and six plays per month (point Y). PLAYS 10 3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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