8. Normal and inferior goods Larry likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Larry's indifference curves for going to ballgames and symphonies. With Larry's initial budget constraint (BC), he chose to go to two symphonies and six baseball games per month (point X). Then his budget constraint shifted to BC2, and he chose to go to five symphonies and five ballgames per month (point Y). 2 BALLGAMES Z 0 5 10 SYMPHONICS of the following choices, which could have shifted Larry's budget constraint from BC₁ to BC₂? Check all that apply. His income increased while the prices of baseball and symphony tickets stayed the same. The price of symphony tickets increased while his income and the price of baseball tickets stayed the same. The prices of both baseball and symphony tickets decreased while his income stayed the same. His income decreased while the prices of baseball and symphony tickets stayed the same. Based on Larry's consumption of ballgames and symphonies after his budget constraint shifted, ballgames are normal are inferior goods. goods and symphonies

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Chapter21: The Theory Of Consumer Choice
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8. Normal and inferior goods
Larry likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following
diagram shows two of Larry's indifference curves for going to ballgames and symphonies. With Larry's initial budget constraint (BC), he chose to go
to two symphonies and six baseball games per month (point X). Then his budget constraint shifted to BC2, and he chose to go to five symphonies
and five ballgames per month (point Y).
2
BALLGAMES
Z
0
5
10
SYMPHONICS
of the following choices, which could have shifted Larry's budget constraint from BC₁ to BC₂? Check all that apply.
His income increased while the prices of baseball and symphony tickets stayed the same.
The price of symphony tickets increased while his income and the price of baseball tickets stayed the same.
The prices of both baseball and symphony tickets decreased while his income stayed the same.
His income decreased while the prices of baseball and symphony tickets stayed the same.
Based on Larry's consumption of ballgames and symphonies after his budget constraint shifted, ballgames are normal
are inferior
goods.
goods and symphonies
Transcribed Image Text:8. Normal and inferior goods Larry likes going to the ballpark to watch baseball, and he also is fond of going to the theater to listen to the symphony orchestra. The following diagram shows two of Larry's indifference curves for going to ballgames and symphonies. With Larry's initial budget constraint (BC), he chose to go to two symphonies and six baseball games per month (point X). Then his budget constraint shifted to BC2, and he chose to go to five symphonies and five ballgames per month (point Y). 2 BALLGAMES Z 0 5 10 SYMPHONICS of the following choices, which could have shifted Larry's budget constraint from BC₁ to BC₂? Check all that apply. His income increased while the prices of baseball and symphony tickets stayed the same. The price of symphony tickets increased while his income and the price of baseball tickets stayed the same. The prices of both baseball and symphony tickets decreased while his income stayed the same. His income decreased while the prices of baseball and symphony tickets stayed the same. Based on Larry's consumption of ballgames and symphonies after his budget constraint shifted, ballgames are normal are inferior goods. goods and symphonies
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