match each term with the correct definition Suppose that you Initially have $100

Question

match each term with the correct definition Suppose that you Initially have $100 to spend on books or movie tickets. The books start off costing $25 each and the movie tickets start off costing $10 each. For each of the following situations, would the attainable set of combinations that you can afford increase or decrease? a Your budget increases from $100 to $150 whilethe prices stay the same b. Your budget remains $100, the price of books Click to sefech emains $25,but the price of movte tickets rises to $20. tiCack to select) remains $100, the price of movie tickets remains $10, but the price of a book fails to $15 Cick to select

Explanation / Answer

A.

Increase

Increase in budget, will help to buy more of each good, so attainable combination will increase.

B.

Decrease

Increase in the price of movie tickets, will cause the attainable combination to decrease as less number of movie tickets will be purchased.

C.

Increase

Decrease in the price of books, will help to buy more. So, attainable combination will increase.

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