of the following choices, which could have shifted Edison's budget constraint from BC₁ to BC₂? Check all that apply. 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. The price of concert tickets increased while his income and the price of theater tickets stayed the same. His income decreased while the prices of theater and concert tickets stayed the same. inferior normal Based on Edison's consumption of plays and concerts after his budget constraint shifted, plays are and concerts are goods. goods

of the following choices, which could have shifted Edison's budget constraint from BC₁ to BC₂? Check all that apply. 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. The price of concert tickets increased while his income and the price of theater tickets stayed the same. His income decreased while the prices of theater and concert tickets stayed the same. inferior normal Based on Edison's consumption of plays and concerts after his budget constraint shifted, plays are and concerts are goods. goods

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

of the following choices, which could have shifted Edison's budget constraint from BC₁ to BC₂? Check all that apply.
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.
The price of concert tickets increased while his income and the price of theater tickets stayed the same.
His income decreased while the prices of theater and concert tickets stayed the same.
inferior
normal
Based on Edison's consumption of plays and concerts after his budget constraint shifted, plays are
and concerts are
goods.
goods

8. Normal and inferior goods
Edison enjoys going to the theater to see plays, and he also enjoys going to rock concerts. The following diagram
shows two of Edison's indifference curves for going to plays and concerts. With Edison's initial budget constraint (BC₁),
he chose to go to four concerts and four plays per month (point X). Then his budget constraint shifted to BC2, and he
chose to go to five concerts and five plays per month (point Y).
PLAYS
10
8
0
4 5
CONCERTS
BC 1
8
BC 2
10
?

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