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ncome per week= $60 $12 per ticket $6 per burger Points A and B are utility maximizing choices.  Burger price doubles going from $6 per burger to $12 per burger. BC2 is representative of the increased burger price. Part a) Draw the substitution and income effect on the graph. Part b) Would the tickets be a normal or inferior good? Part c) Would the burgers be a normal or inferior good? Part d) Draw the demand curve for burgers.

ncome per week= $60 $12 per ticket $6 per burger Points A and B are utility maximizing choices.  Burger price doubles going from $6 per burger to $12 per burger. BC2 is representative of the increased burger price. Part a) Draw the substitution and income effect on the graph. Part b) Would the tickets be a normal or inferior good? Part c) Would the burgers be a normal or inferior good? Part d) Draw the demand curve for burgers.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Income per week= $60

$12 per ticket

$6 per burger

Points A and B are utility maximizing choices. 

Burger price doubles going from $6 per burger to $12 per burger. BC2 is representative of the increased burger price.

Part a) Draw the substitution and income effect on the graph.

Part b) Would the tickets be a normal or inferior good?

Part c) Would the burgers be a normal or inferior good?

Part d) Draw the demand curve for burgers.

 

4 B A U1 U2 BC1 BC2 1 2 3 4 6. 7 8. 9. 10 11 Burgers Tickets 21
Transcribed Image Text:4 B A U1 U2 BC1 BC2 1 2 3 4 6. 7 8. 9. 10 11 Burgers Tickets 21
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