Answer to Question #64567 in Microeconomics for fakhr hijazi

Question #64567
1. Assume you are about to graduate and you have several family members that are interested in attending the ceremony. You only have 100$ to spend this month (no one will lend you any money) and you are expected to buy the tickets to graduation. So, this month you will only consume tickets, T, and a composite commodity, X. The price of a ticket is 10 $ and you plan on buying 4 tickets (the price of the composite commodity, X, is 1 $) But the university makes a special offer. You may join the Alumni Association for 20 $, and then you can buy tickets for 5 $ each (note that joining the Alumni Association holds absolutely no interest to you-it provides no extra utility). Verbally and graphically explain whether you will join the Alumni Association to get the cheaper tickets. ANY SOLUTION FOR THIS
1
Expert's answer
2017-01-16T09:56:13-0500
Joining the association can be profitable and unprofitable to you according to the number of tickets consumed. If you buy more than 4 tickets to the final, then you need to join the association. And if you buy less than 4 tickets, then you will be unprofitable.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal