Ben gets a monthly scholarship of 12000rs from his college which he spends on attending conferences or buying books for his research. The price of attending a conference is 1500rs and the price of buying a book is 1000rs. At this budget, he goes to 4 conferences and buys 6 books. However, when the price of attending the conferences decreases to 1000rs, he now goes to 6 conferences and still buys 6 books.
a. Using a suitable diagram, explain the change in the consumption bundle of book and conference attendance due to the change in price of attending conferences.
b. Derive the demand curve for attending conferences from the price consumption curve.
Attachments:
Answers
Answered by
0
Ben gets a monthly scholarship of 12000rs from his college which he spends on attending conferences or buying books for his research. The price of attending a conference is 1500rs and the price of buying a book is
1000rs. At this budget, he goes to 4 conferences and buys 6 books. However, when the price of attending the conferences decreases to 1000rs, he now goes to 6 conferences and still buys 6 books.
a. Using a suitable diagram, explain the change in the consumption bundle of book and conference attendance due to the change in price of attending conferences.
b. Derive the demand curve for attending conferences from the price consumption curve.
Similar questions