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For question letter C, how do I compute the new equilibrium after price change Question 1 [18 points] Calvin loves to go on Zoo trips.

For question letter C, how do I compute the new equilibrium after price change

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Question 1 [18 points] Calvin loves to go on Zoo trips. Going on a Zoo trip costs Calvin a total of $51 per trip. Calvin also loves to go to Classical concerts. Going to a concert costs Calvin a total of $30 per concert. Calvin must allocate his monthly entertainment budget carefully, and has evaluated how much satisfaction, measured in utils, he obtains from each Zoo trip and each Classical concert visit. Calvin's total utility from each activity is independent of the amount of the other activity he engages in. Calvin has an entertainment budget of $294. Marginal Visit Number Total Ulils Total Utils Marginal Ulils Marginal Utils Marginal (Zoo) (Classical) (Zoo) (Classical) Utils/$ (Zoo) Untilers (Classical) 126 75 126 75 2.47 2.5 236 185 110 81 2.16 2.03 332 234 96 49 1.68 1.65 416 273 84 39 1.65 1.3 490 304 74 31 1.45 1.03 556 329 25 1.29 D.83 616 350 21 1.18 0.7 Suppose that the price of a Classical concert increases to $38 from $30. The income budget remains at $294. Visits past 7 will not give any extra utility. a) Compute Calvin's original equilibrium (before the price change). Original number of Zoo trips = Original number of Classical concerts = b) Fill out the table for the new MU/P for Classical concerts (after the price change). Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. Marginal Visit Number Classical Utils per $ 1.97 1.6 1.28 1.02 0.81 0.65 0.55 hips:Micon 1.lyryx.com/bludont-marvista/LabBarviaflorid-4785 Lib # [Quinition 1) = Lyrex Leaming Inc c) Compute Calvin's new equilibrium (after the price change)- New number of Zoo trips = New number of Classical concerts = 0

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