Darla has an annual income of $120 that she spends on movies, at $10 per show,...
Darla has an annual income of $120 that she spends on movies, at $10 per show, and All Other Goods. Suppose a movie theatre offers to sell her a pass that will allow her to see any amount of movies for $6 per show. The pass costs $30.
- On the same graph, sketch Darla’s budget line if 1) she pays $10 per ticket, and 2) if she buys the pass for $30, and then pays $6 per ticket.
- Will Darla buy the pass? Discuss, using graphs to illustrate your answer.
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Darla has an annual income of $120 that she spends on movies, at
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