Think of a consumer who has a 200 000 euros income and can spend them on an opera, paying a price of 150 euros per ticket, or do rural tourism, paying an average price of 500 euros. Make a graphic of the budget constraint of this consumer. ¿What happens with the budget constraint slope if the price of the ticket to the opera goes down to 100 euros? ¿What happens to the affordable baskets if the average price of rural tourism goes up to 1000 euros?

Think of a consumer who has a 200 000 euros income and can spend them on an opera, paying a price of 150 euros per ticket, or do rural tourism, paying an average price of 500 euros. Make a graphic of the budget constraint of this consumer. ¿What happens with the budget constraint slope if the price of the ticket to the opera goes down to 100 euros? ¿What happens to the affordable baskets if the average price of rural tourism goes up to 1000 euros?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.2P

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