(Figure: Concert Tickets and Movie Tickets I) Use the graph to answer the following questions.
a. What is the marginal rate of substitution at 3 concert tickets and 8 movie tickets?
b. If the consumer's income decreases by 10% and the price of both goods decreases by 10%, how many concert and movie tickets will the consumer purchase?
c. If the price of movie tickets doubles, what does the marginal rate of substitution equal at the new utility-maximizing point?

Question

(Figure: Concert Tickets and Movie Tickets I) Use the graph to answer the following questions.  
a. What is the marginal rate of substitution at 3 concert tickets and 8 movie tickets?
b. If the consumer's income decreases by 10% and the price of both goods decreases by 10%, how many concert and movie tickets will the consumer purchase?
c. If the price of movie tickets doubles, what does the marginal rate of substitution equal at the new utility-maximizing point?

Quizplus · Accepted Answer

The Answer of (Figure: Concert Tickets and Movie Tickets I) Use the graph to answer the following questions.  
a. What is the marginal rate of substitution at 3 concert tickets and 8 movie tickets?
b. If the consumer's income decreases by 10% and the price of both goods decreases by 10%, how many concert and movie tickets will the consumer purchase?
c. If the price of movie tickets doubles, what does the marginal rate of substitution equal at the new utility-maximizing point?

(Figure: Concert Tickets and Movie Tickets I) Use the Graph