ncome per week= $60 $12 per ticket $6 per burger Points A and B are utility maximizing choices. Burger price doubles going from $6 per burger to $12 per burger. BC2 is representative of the increased burger price. Part a) Draw the substitution and income effect on the graph. Part b) Would the tickets be a normal or inferior good? Part c) Would the burgers be a normal or inferior good? Part d) Draw the demand curve for burgers.
ncome per week= $60 $12 per ticket $6 per burger Points A and B are utility maximizing choices. Burger price doubles going from $6 per burger to $12 per burger. BC2 is representative of the increased burger price. Part a) Draw the substitution and income effect on the graph. Part b) Would the tickets be a normal or inferior good? Part c) Would the burgers be a normal or inferior good? Part d) Draw the demand curve for burgers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Income per week= $60
$12 per ticket
$6 per burger
Points A and B are utility maximizing choices.
Burger
Part a) Draw the substitution and income effect on the graph.
Part b) Would the tickets be a normal or inferior good?
Part c) Would the burgers be a normal or inferior good?
Part d) Draw the
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