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7 February, 02:33

3. Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing $25 each and the movie tickets start off costing $10 each. For each of the following situations, would the attainable set of combinations that you can afford increase or decrease?

a. Your budget increases from $100 to $150 while the prices stay the same.

b. Your budget remains $100, the price of books remains $25, but the price of movie tickets rises to $20.

c. Your budget remains $100, the price of movie tickets remains $10, but the price of a book falls to $15.

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  1. 7 February, 02:47
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    Suppose that you initially have $100 to spend on books or movie tickets.

    The books start off costing $25 each and the movie tickets start off costing $10 each.

    a. Your budget increases from $100 to $150 while the prices stay the same.

    Increase

    b. Your budget remains $100, the price of books remains $25, but the price of movie tickets rises to $20.

    Decrease

    c. Your budget remains $100, the price of movie tickets remains $10, but the price of a book falls to $15.

    Increase
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