Question: Paula a former actress spends all her income attending plays

Paula, a former actress, spends all her income attending plays and movies and likes plays exactly three times as much as she likes movies.
a. Draw her indifference map.
b. Paula earns $120/wk. If play tickets cost $12 each and movie tickets cost $4 each, show her budget line and highest attainable indifference curve. How many plays will she see?
c. If play tickets are $12, movie tickets $5, how many plays will she attend?

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  • CreatedDecember 12, 2014
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