Carmen's preferences are such that she is always indifferent between watching two movies or seeing one basketball
Question:
a. What must Carmen's indifference curves look like?
b. Suppose that Carmen has an income of $90. If a movie costs $10 and a basketball game costs $18, what will Carmen's optimal consumption bundle be?
Transcribed Image Text:
Movies 10 BC 6 Optimal consumption 0 3 4 5 Basketball games
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a Carmens indifference curves are straight parallel lines For her watching a movi...View the full answer
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Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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