The carnival and the circus have both come to town. You have 6 free hours to kill.
Question:
a. Suppose admission is free at both the carnival and the circus. Illustrate the budget line that shows your options for how you can spend your day.
b. Suppose instead that admission is $2 per hour at the carnival and $4 per hour at the circus. Your income is $20. Now illustrate your budget line, remembering that you've still got only 6 hours to kill. Is it still a straight line?
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a You can have up to 6 hours at the carnival or up to 6 h...View the full answer
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