Suppose that you initially have $100 to spend on books or movie tickets. The books start off costing S25 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 while the prices stay the same. b. Your budget remains S100, the price of books remains S25, but the price of movie tickets rises to S20. c. Your budget remains $100, the price of movie tickets remains S10, but the price of a book falls to $15.

Option A Increase

Option B Decrease

Option C Increase

Explanation:

If the price of the item increase then the affordability decreases and if the price of the item decreases then the affordability increases.

In the option A the affordability has increased because of increase in purchasing power which means now I can afford movies and books upto $150 so the affordability has increased by $50.

In the option B, the affordability decreased because the price of the item has increased.

In the option C, the affordability increases as the price of items are decreased. Now I can buy more books or movie tickets due to increased savings.

a. increase , b. decrease , c.increase

Explanation:

a. When the budget increases from $100 to $150 more books and movies tickets can be purchased at the current prices. attainable combinations would definitely increase.

b. When the price of movie tickets rises to $20, attainable combinations will decrease because less movie tickets will be attainable at the current budget of  $100, previously we used to get 2 movie tickets for $20 now we get 1 movie ticket for $20, with a Budget of $100 and price of books remaining at $25 the combination sets attainable will decrease  

c. when the price of a book falls from $25 to $15 attainable combinations will increase. When the price for a book falls to $15 per books, there is an  extra $10 dollar ($25 -$15) available that can be used to buy more ticket movies or contributes towards attaining more books. When the price of books falls to $15, other factors remaining equal, attainable combinations sets will increase

answer; dogs;

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