Provide detailed, but no longer than one page answers including graphs for the following questions based...

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Provide detailed, but no longer than one page answers including graphs for the following questions based on economic theory. Two of your team members every month allocate $30 each to play online video games. They choose to allocate this money between MMO (massively multiplayer online games like World of Warcraft) and SIM (simulation games like the SIM game series). a) One teammate spends more on MMO than the other. Explain and show graphically. b) In one particular month, the price of MMO games is reduced. How does this impact the teammates' choices? Explain and show graphically. c) Based on your answer to part b), how would the individual demand curve each teammate has for SIM change due to this price reduction? Explain and show graphically. Provide detailed, but no longer than one page answers including graphs for the following questions based on economic theory. Two of your team members every month allocate $30 each to play online video games. They choose to allocate this money between MMO (massively multiplayer online games like World of Warcraft) and SIM (simulation games like the SIM game series). a) One teammate spends more on MMO than the other. Explain and show graphically. b) In one particular month, the price of MMO games is reduced. How does this impact the teammates' choices? Explain and show graphically. c) Based on your answer to part b), how would the individual demand curve each teammate has for SIM change due to this price reduction? Explain and show graphically.

Answer rating: 100% (QA)

a The allocation of money between MMO and SIM games by the two teammates depends on their preferences and the marginal utility they derive from each game Lets assume one teammate Teammate A spends mor... View the full answer