Microeconomics

8. Normal and inferior goods Poornima enjoys going to the theatre to see plays, and she also enjoys going to rock concerts. The following diagram shows two of Poornima's indifference curves for going to plays and concerts. With Poornima's initial budget constraint (BC1 ), she chose to go to four concerts and four plays per month (point X). Then her budget constraint shifted to BC2, and she chose to go to five concerts and five plays per month (point Y). 10 B PLAYS 5 A BC BC, 4 5 B 10 CONCERTSOf the following choices, which could have shifted Poornima's budget constraint from BC, to BC2? Check all that apply. O The prices of both theatre and concert tickets decreased while her income stayed the same. O The price of concert tickets increased while her income and the price of theatre tickets stayed the same. Her income increased while the prices of theatre and concert tickets stayed the same. O The prices of both theatre and concert tickets increased while her income stayed the same. Based on Poornima's consumption of plays and concerts after her budget constraint shifted, plays are goods and concerts are goods