Question

Suppose Shane has a budget of $48 that he spends on movies (Q1) and roller skating (Q2). The price of movie tickets recently increased form $9 per person to $12 per person, and the price of roller skating decreased from $5 to $4 per person. What is Shane's new budget constraint?

Answer 1

Answer:

$12 Q1 + $4 Q2 = $48

Explanation:

given data

budget = $48

movie tickets Q1 increased = $9 to $12 per person

skating Q2 decreased = $5 to $4 per person

solution

When the price of movie =  $9

than  price of roller skating is  $5

so budget constraint will be as

$9 Q1 + $5 Q2 = $48

and when price change in increase in Q1 and decrease in Q2

so new budget constraint will be here

$12 Q1 + $4 Q2 = $48