Amy enjoys going to the theater to see plays, and she also enjoys going to rock

Question

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

Explanation / Answer

Both Option (1) and (2) are correct.

Either her income falls and tickets price remains same or vice versa

Both are elastic goods as they change in accordance with price level

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