Cherise considers movies and concerts to be perfect substitutes. When Cherise maximizes her utility, what will the optimal bundle of movies and concerts probably look like? Explain your reasoning by drawing a graph that includes her indifference curves and a hypothetical budget constraint

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A:

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Q: Suppose that price of good X falls by 50 % while price of Y falls by 25% and Income falls by 50%.…

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A: Optimal bundle is where budget constraint is tangent to indifference curve.

Q: Q2. UA = x + y2    and  UB = x - y2 Draw representative indifference curves for each type of…

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