Solved

Yasmine Has $40 Weekly to Spend on Restaurant Meals (Priced

Question 136

Essay

Yasmine has $40 weekly to spend on restaurant meals (priced at $10 per meal) and bowling (priced at $2 per game).
a. Graph Yasmine's budget constraint, placing restaurant meals on the vertical axis and bowling games on the horizontal axis. Illustrate Yasmine's optimal consumption bundle, composed of 1 restaurant meal and 15 games of bowling.
b. Suppose that the price of bowling increases to $4 per game. Illustrate Yasmine's new budget constraint along with her new optimal consumption bundle, composed of 2 restaurant meals and 5 games of bowling.
c. Draw Yasmine's demand curve for bowling, indicating her quantities demanded at $2 and $4.

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