Question
1) (a) If Abraham had an unlimited budget (price was no object to Abraham) he would purchase a) 1 b) 2 c) 3 d) 4
1) (a) If Abraham had an unlimited budget (price was no object to Abraham) he would purchase
a) 1
b) 2
c) 3
d) 4
e) 5
f) 6
g) more than 6
movies and
a) 1
b) 2
c) 3
d) 4
e) 5
f) 6
g) more than 6
game rentals.
b) With Abraham's budget set at $35 he would purchase
a) 1
b) 2
c) 3
d) 4
e) 5
f) 6
movies and
a) 1
b) 2
c) 3
d) 4
e) 5
f) 6
game rentals.
c)Suppose Abraham receives a raise and his entertainment budget increases to $50.If this was the case he would purchase
a) 1
b) 2
c) 3
d) 4
e) 5
f) 6
movies and
a) 1
b) 2
c) 3
d) 4
e) 5
f) 6
game rentals
(d) According to the optimal bundles calculated in parts (b) and (c), we can see that to Abraham movies are a(n)
(a) normal
(b) inferior
good and game rentals are a(n)
(a) normal
(b) inferior
good
Question 2
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started