EXERCISES .1 Monifa plans to spend her income on concert tickets and movie tickets. Suppose that she has an income of $100. The price of a concert ticket is $20, and the price of a movie ticket is $10. a. Draw, and carefully label, a budget line diagram illustrating the consumption combinations that she can afford. b. Can she afford six movie tickets and one concert ticket? Label this point on your graph. c. Can she afford two movie tickets and six concert tickets? Label this point on your graph. d. Can she afford four movie tickets and three concert tickets? Label this point on your graph. e. Which of the combinations mentioned just uses up al her income? .2 Continuing from the previous exercise, suppose that Monifa's income rises to $120. Add her new budget line to the previous graph. 3. Next, suppose that Monifa's income stays at $100, but the price of each concert ticket drops from $20 to $12.50. a. Draw and carefully label both her original and her new budget lines. b. Can she afford two movie tickets and six concert tickets after the price drop? 4. Suppose that Antonio's total utility from different quantities of snacks per day is given by the table below. Quantity of snacks per day Total utility Marginal utility: 20 40 60 75 85 90 85 75 a. Draw and label Antonio's utility function for snacks. b. Fil ni the last column of the table above, calculating Antonio's marginal utility from snacks. c. Does Antonio always display diminishing marginal utility ni his satisfaction from snacks? d. Assuming Antonio is rational, what is the maximum number of snacks that he could choose to consume per day?