Question
Bernie is planning a few weekend vacations for the coming year. He always travels to his destination on Amtrak, and stays in a hotel for
Bernie is planning a few weekend vacations for the coming year. He always travels to his destination on Amtrak, and stays in a hotel for the weekend. Round trip Amtrak tickets (good X) and hotel weekend stays (good Y) are perfect complements. Bernies vacation budget for weekends this coming year is $4,000. Good X costs $150 each. Good Y costs $200 each.
A. Draw Bernies budget line for goods X and Y.
B. Draw Bernies indifference curves for goods X and Y.
C. Solve Bernies total consumption of goods X and Y, for the coming year. You may use algebra to solve it. Label the result, with correct numbers, on your diagram.
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