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…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 1QR

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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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