1.5 Kristine is a fan of both romantic movies and classical concerts. This month she has $480 to spend on the two activities. The original budget constraint is shown in the graph below. Let X represent romantic movies and Y rep- resent classical concerts. a. What is the equation of the original budget constraint? b. What is the price of a ticket to a romantic movie? a classi- cal concert? c. Assume price change occurs and Kristine now faces the new budget constraint. What is the equation of the new budget constraint? d. With the new budget constraint, what is the price of a ticket to a romantic movie? a classical concert?

1.5 Kristine is a fan of both romantic movies and classical concerts. This month she has $480 to spend on the two activities. The original budget constraint is shown in the graph below. Let X represent romantic movies and Y rep- resent classical concerts. a. What is the equation of the original budget constraint? b. What is the price of a ticket to a romantic movie? a classi- cal concert? c. Assume price change occurs and Kristine now faces the new budget constraint. What is the equation of the new budget constraint? d. With the new budget constraint, what is the price of a ticket to a romantic movie? a classical concert?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 19CTQ: Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers...

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Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers rises from 2 to 4. Why is file opportunity cost of bus tickets unchanged? Suppose Alphonsns weekly spending money increases from 10 to 20. How is his budget constraint affected from all three changes? Explain.
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