Use the below information to find the optimal level of consumption for movies and bowling with the $24 to spend. Price Quantity 1 2 3 $8.00 MU of movies 100 80 60 Income- $24 MU/P movies Will go to 2 movies and 1 bowling Will go to 2 movies and 2 bowling Will go to 1 movie and 3 bowling Will go to 3 movies and 2 bowling MU of bowling 60 40 30 $4.00 MU/P bowling
Added by Ashley G.
Step 1
MU/P for movies: $8.00 / 100 = 12.5 $8.00 / 80 = 10 $8.00 / 60 = 7.5 MU/P for bowling: $4.00 / 60 = 15 $4.00 / 40 = 10 $4.00 / 30 = 7.5 Show more…
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A movie theatre wants to determine the price per ticket that should be charged to maximize its revenue. The theatre can accommodate 2000 movie goers per night, but the average attendance is about 1400 people per night. The average ticket price is about $8.00. Market research shows that, for each $0.50 reduction in the ticket price, attendance increases by 250 spectators. What should the theatre charge per ticket to maximize the revenue?
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Joy goes bowling once and ice skating twice a month when he has $\$ 20$ to spend on these activities. A visit to the bowling alley costs $\$ 10,$ and an ice skating ticket costs $\$ 5 .$ Draw Joy's budget line. If the price of an ice skating ticket falls to $\$ 4,$ describe how Joy's consumption possibilities change.
In Exhibit $4,$ assume Multiplex tickets cost $\$ 6$ each, video rentals cost $\$ 2$ each, and bags of popcorn cost $\$ 1$ each. Suppose the consumer has $\$ 12$ per week to spend on Multiplex tickets, video rentals, and popcorn. What combination of goods will give the consumer the most utility? a. 1 movie, 3 videos, and no popcorn b. 1 movic, 2 videos, and 2 bags of popcorn c. 1 movie, 1 video, and 4 bags of popcorn d. 2 movies, no videos, and no bags of popcorn
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