Suppose you choose between a composite good (c) and movie tickets purchased in a month. Draw the budget constraint and the optimal choice when given standard indifference curves. Now, change the price of movie tickets a few times and show how optimal choices, given new prices, resulting in a demand curve for movie tickets in a month.

Answer rating: 100% (QA)

Sure lets start by drawing the initial budget constraint and the optimal choice when the price of mo... View the full answer