Think of a consumer who has a 200 000 euros income and can spend them on an opera, paying a price of 150 euros per ticket, or do rural tourism, paying an average price of 500 euros. Make a graphic of the budget constraint of this consumer.¿What happens with the budget constraint slope if the price of the ticket to the opera goes down to 100 euros?¿What happens to the affordable baskets if the average price of rural tourism goes up to 1000 euros?

Given, Consumer's income = 200000 Price of an opera ticket = 150 Price of a rural tour = 500

Answered: Think of a consumer who has a 200 000…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Think of a consumer who has a 200 000 euros income and can spend them on an opera, paying a price of 150 euros per ticket, or do rural tourism, paying an average price of 500 euros.

Make a graphic of the budget constraint of this consumer.
¿What happens with the budget constraint slope if the price of the ticket to the opera goes down to 100 euros?
¿What happens to the affordable baskets if the average price of rural tourism goes up to 1000 euros?

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