Economics 1st Edition by Dean Karlan,Jonathan Morduch

تمرين 21

Jordan visits her sister several times a year. Jordan's travel budget is $600, which she uses to buy bus tickets and train tickets. The train costs $120 per trip, and the bus costs $40.
a. Graph Jordan's budget constraint.
b. How many total trips can Jordan take if she takes the train three times?
c. Suppose Jordan's travel budget is cut to $360. Draw her new budget constraint.
d. How many train trips can she take if she doesn't want to reduce the total number of trips she takes each year?