Deborah enjoys going to the theater to see plays, and she also enjoys going to rock concerts. The following diagram shows two of Deborah's indifference curves for going to plays and concerts. (Note: The numbers simply indicate which indifference curve is tangent with which budget constraint, not the utility ranking of the indifference curve.) With Deborah's initial budget constraint, shown by BC1BC1, she chose to go to 5 concerts and 5 plays per month (point X). Then her budget constraint shifted to that shown by BC2BC2, and she chose to go to 4 concerts and 4 plays per month (point Y).

On the following graph, use the blue line (circle symbol) to draw the income-demand curve for plays at the two income levels previously Indicated. Assume the incomedemand curve is a straight line. /'\\ KB} 1000 O 900 Income Demand 500 -- 700 600 500 400 300 -- INCOME (Dollars per month) 200 100 0 wliiillllil o 1 2 3 4 5 a 7 a 9 10 PLAYS PER MONTH Which of the following will shift the incomedemand curve for rock concerts inward? Check all that apply. A decrease in Deborah's income A decrease in the price of a rock concert An increase in the price of a rock concert 1o - 9 _ a _ 7 _ I E 5 _ '2' X E 5 -+ o. I g 4 --+Y I S I I EL 3 __ I IE I I 1 I I 2 IE: I I 2 I I 1 _ I I BC BC 0 1iiilIii7iilu O 1 2 3 4 5 6 7 8 9 10 CONCERTS PER MONTH Suppose that a play or rock concert costs $50 per ticket. Assuming that Deborah's budget constraint shifted due to a change in income, you can deduce that her income '7 from $ to 3 per month. Based on Deborah's consumption of plays and concerts after her budget constraint shifted, you know that for Deborah, plays are 7 , and concerts are T . This means that the incomedemand curve for plays will slope V , and the incomedemand for rock concerts will slope Y in this case. Deborah enjoys going to the theater to see plays, and she also enjoys going to rock concerts. The following diagram shows two of Deborah's indifference curves for going to plays and concerts. (Note: The numbers simply indicate which indifference curve is tangent with which budget constraint, not the utility ranking of the indifference curve.) With Deborah's initial budget constraint, shown by 3C1, she chose to go to 5 concerts and 5 plays per month (point X). Then her budget constraint shifted to that shown by 3C2, and she chose to go to 4 concerts and 4 plays per month {point Y)