Question
Course: Microeconomics - Consumer Theory - Consumption subsidies Let there be 2 situations: Situation A : a student buys tickets for the movie season. When
Course: Microeconomics - Consumer Theory - Consumption subsidies
Let there be 2 situations: Situation A: a student buys tickets for the movie season. When she arrives at the entrance, she realizes that she lost the $50,000 she had in her pocket. The next day, she returns and buys 10 tickets at $3,000 each. She then spends $60,000 on lunch tickets in the month.
Situation B: A student went to buy tickets for the movie season. She buys 10 tickets at $3,000 each. On the way back she lost the 10 tickets and $20,000 she had in her pocket.
In situation B, will she buy more or fewer lunch tickets than in A. Why? Justify with a graph.
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