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Economics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0073511498Economics 1st Edition by Dean Karlan,Jonathan Morduch
Edition 1ISBN: 978-0073511498 Exercise 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?
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?
Explanation
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Budget constraints:
Budget constraint r...
Economics 1st Edition by Dean Karlan,Jonathan Morduch
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