a. Graph Sabine's budget constraint for basketball games and football games. Use the tool provided (BC1) and draw only the endpoints such that the first point touches the vertical axis and the second point touches the horizontal axis. b. Suppose the basketball team has a losing season and decides to decrease the price of a ticket to $20. Draw Sabine's new budget constraint.Use the tool provided (BC2) and draw only the endpoints such that the first point touches the vertical axis and the second point touches the horizontal axis. c. After the price decrease from (b), what will happen to Sabine's consumption of basketball and football games? According to the income effect, the quantity of basketball games will (Click to select) (Click to select) V According to the substitution effect, the quantity of basketball games will (Click to select) V and the quantity of football games will (Click to select) V and the quantity of football games will Combining the two effects, the quantity of basketball games she attends will (Click to select) ▼ The quantity of football games she attends will (Click to select)

a. Graph Sabine's budget constraint for basketball games and football games. Use the tool provided (BC1) and draw only the endpoints such that the first point touches the vertical axis and the second point touches the horizontal axis. b. Suppose the basketball team has a losing season and decides to decrease the price of a ticket to $20. Draw Sabine's new budget constraint.Use the tool provided (BC2) and draw only the endpoints such that the first point touches the vertical axis and the second point touches the horizontal axis. c. After the price decrease from (b), what will happen to Sabine's consumption of basketball and football games? According to the income effect, the quantity of basketball games will (Click to select) (Click to select) V According to the substitution effect, the quantity of basketball games will (Click to select) V and the quantity of football games will (Click to select) V and the quantity of football games will Combining the two effects, the quantity of basketball games she attends will (Click to select) ▼ The quantity of football games she attends will (Click to select)

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 1PA

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