The graph illustrates a budget constraint for Ayesha, showing the trade-off between renting movies and going to the theater. The x-axis represents the number of movies watched in the theater, while the y-axis represents the number of movie rentals.- The graph is a straight line from (0, 12) to (4, 0).- This indicates that if Ayesha spends all her budget on movie rentals, she can rent 12 movies.- If she chooses to go to the theater, she can watch up to 4 movies.Given that Ayesha has $48 to spend on these options, we need to determine the cost of each movie theater ticket. Since watching 4 movies in the theater consumes her entire budget, the cost per theater movie ticket is:\[ \text{Cost per theater movie ticket} = \frac{\$48}{4} = \$12 \]Therefore, each movie theater ticket costs $12.

A budget line, also known as a budget constraint, is a graphical representation or equation that…

Movies Rentals 14 13 12 11 10 9 8765 & 3 N1 4 2 12 3 4 5 6 7 8 9 10 11 : Movies in Theater Assume the graph shown represents Ayesha's budget constraint. If she has $48 to spend on these two items, what must a movie theater ticket cost?

Movies Rentals 14 13 12 11 10 9 8765 & 3 N1 4 2 12 3 4 5 6 7 8 9 10 11 : Movies in Theater Assume the graph shown represents Ayesha's budget constraint. If she has $48 to spend on these two items, what must a movie theater ticket cost?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The graph illustrates a budget constraint for Ayesha, showing the trade-off between renting movies and going to the theater. The x-axis represents the number of movies watched in the theater, while the y-axis represents the number of movie rentals.

- The graph is a straight line from (0, 12) to (4, 0).
- This indicates that if Ayesha spends all her budget on movie rentals, she can rent 12 movies.
- If she chooses to go to the theater, she can watch up to 4 movies.

Given that Ayesha has $48 to spend on these options, we need to determine the cost of each movie theater ticket. Since watching 4 movies in the theater consumes her entire budget, the cost per theater movie ticket is:

\[ \text{Cost per theater movie ticket} = \frac{\$48}{4} = \$12 \]

Therefore, each movie theater ticket costs $12.

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