Normal and interior goods Manuel enjoys going to the theater to see plays, and h

Question

Normal and interior goods Manuel enjoys going to the theater to see plays, and he also enjoys going to rock concerts. The following diagram shows two of Manuel's indifference curves for going to plays and concerts. With Manuel's initial budget constraint (BC_1), he chose to go to five concerts and five plays per month (point X). Then his budget constraint shifted to BC_2, and he chose to go to four concerts and four plays per month (point Y). Of the following choices, which could have shifted Manuel's budget constraint from BC_1, to BC_2,? Check all that apply. Square The prices of both theater and concert tickets increased while his income stayed the same. Square His income decreased while the prices of theater and concert tickets stayed the same. Square The prices of both theater and concert tickets decreased while his income stayed the same. Square His income increased while the prices of theater and concert tickets stayed the same. Based on Manuel's consumption of plays concerts after his budget constraint shifted, plays are_____goods and concerts are_____goods.

Explanation / Answer

Chech all that apply:

* His income decreased while the price of theater and concert tickets stayed the same.

* Based on Manuel's consumption of plays and concerts after his budget constraint shifted, plays are normal goods and concerts are normal goods.

*****

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.