i) Suppose concert tickets cost $12 each and Alejandro’s income is $M. Let Aleja
ID: 1149251 • Letter: I
Question
i) Suppose concert tickets cost $12 each and Alejandro’s income is $M. Let Alejandro buy Q sub F film tickets and Qsub C concert tickets. What expression describes Alejandro’s Engel curves?
A: Qf =Qc=M-20
B: Qf =Qc=M/20
C: Qf =Qc=20
D: Qf =Qc=20M
@ 100%). 11:19 PM ezto.mheducation.com + For Alejandro, concert tickets and film tickets are perfect complements-he does not enjoy additional concerts when he has attended more concerts than films or additional films when he has attended more films than concerts. He can spend $200 on tickets, and film tickets cost $8 per ticket. Concert tickets cost Pc each. a. True or false? Alejandro is happier with 10 concerts and 10 films than with 10 concerts and 9 films. b. True or false? Alejandro is happier with 10 concerts and 11 films than with 10 concerts and 10 films c. True or false? When Alejandro maximizes his utility, he will purchase an identical number of concert and film tickets. d. Suppose Pc $12. Alejandro purchases x number of film tickets and x number of concert tickets. How much does he spend in total? 20x 12x 200 e. Suppose Pc $12. To maximize his utility, what number of concert tickets and film tickets will he purchase? Instructions: Enter your answer as a whole number tickets f Suppose concert tickets cost Pc each. To maximize his utility, what number of concert tickets and film tickets will he purchase? Choose from the options below. A: 200(8 + P) B: 25 C: 200 Pc D: 25 (200 Pc) Formula A Formula B Formula C Formula D g. Suppose Qc denotes the number of concert tickets that Alejandro will purchase. What is the formula for Qc? Choose from the options below B: Qc= 200/ Pc C Qc 200(8+Pc) Formula D Formula A Formula B Formula C h. What is Alejandro's demand for concert tickets? Choose from the options below. B: QC=200 f PC D: Qc= 200 I (84 Pd Formula B Formula AExplanation / Answer
a) Since both the thing is perfect complement, the person will anyday like an equal treatment to both the film and concert.
b) False. It is said that the person doesnot enjoy addition of the concert/film if that more of the concert or film. So for him equalt quantity is best. So 10 film and 10 concert is this optimal.
c) True. To maximize the utility he will by identical number of the ticket for film and concert. The reason is stated above.
d) His budget constrain is 200 and togther it will cost 12x+8x= 20x. hence he can go for 10 films and 10 concert, which will cost him 200. Hence option c.
e) to maximize he should buy 10 movie ticket and 10 concert. Since it is perfect complement he wants both equal in number.
f) option A. Since both are perfect complement.
g) formula C.
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