Purchase Solution

consumption possibilities curve

Not what you're looking for?

Ask Custom Question

Please include graph and an explanation of how the answer was solved.

6. In problem 4, Pete's uncle gives him $60 to spend on concert tickets, so he now has $260.
a. Draw a graph that shows Pete's consumption possibilities.
b. How many rock concerts and how many operas does Pete now attend?

Information:
Problem 4
Pete enjoys rock concerts and the opera. The table shows the marginal utility he gets from each activity.
Number per month Marginal utility from Rock concerts Marginal utility from operas
1 120 200
2 100 160
3 80 120
4 60 80
5 40 40
6 20 0
Pete has $200 a month to spend on concerts. The price of a rock concert ticket is $20 and the price of an opera ticket is $40.

See the attached file.

Attachments
Purchase this Solution
Solution Summary

Examine a consumption possibilities curve.

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • production possibilities curve

    79595 Production Possibilities curve N What is the best answer? 1. A production possibilities curve a. that shows opportunity cost is a straight line. b. has time on one axis and space on the other. c.

  • Positive vs Normative Statement

    However, because of specialization and trade, the quantity of goods for consumption is higher than the quantity that would be available under the production possibilities curve.

  • Production and Consumption with and without Tariffs

    With trade, and given world price, see where the World Price line meets the Supply curve, that Quantity is the Domestic Production. See where the World Price line meets the Demand Curve, that would be domestic demand or Consumption.

  • Explain the Concept of Comparative and Absolute Advantage

    Without trade, a country can only consume the goods it produces, so its consumption possibilities are limited by its production possibilities curve.

  • graph of the production possibilities frontier

    The graph below illustrates Crusoe's production-possibilities frontier (and his consumption-possibilities frontier).

  • Production Possibilities Curve, Economic System

    563913 Production Possibilities Curve, Economic System 1.The production possibilities curve is an important model of how much an economy can produce given resources and technology. a.

  • GDP components

    How does it relate to the view held by classical economists that the economy generally will operate at a position on its production possibilities curve. Use production possibilities to demonstrate Keynes's view on this matter 1.

  • Free Trade Equilibrium

    Draw an initial free-trade equilibrium for a small country facing fixed world prices, depicting its production possibilities frontier and relevant indifference curves. a).

  • Automobiles vs Forklifts: Production Possibility Comparison

    Is production at a point outside the production possibilities curve currently possible? Could a future advance in technology allow production beyond the current production possibilities curve?

View More Related Solutions