3.Jane always gets twice as much utility from an extra ballet ticket as she does from an extra basketball ticket,regardless of how many tickets of either type Draw Jane's income consumption curve and her Engel curve for ballet Jane will consume either all ballet tickets or all basketball tickets,depending on the two prices.As long as ballet tickets are less than twice the price of basketball tickets,she will choose all ballet.If ballet tickets are more than twice the price of basketball tickets then she will choose all basketball This can be determined by mparing the marginal utility per dollaror each type of ticket. where her margir another ballet herm rginal another basketball ticket is 1.Her income consumption curve will then lie along the axis of the good that she chooses.As income increases,and the budget line shifts out,she will stick with the chosen good.The Engel curve is a linear. upward-sloping line.For any given increase in income,she will be able to 4.a.Orange juice and apple juice are known to be perfect substitutes.Draw the appropriate price-consumption (for a variable price of orange juice)and income-consumption curves. We know that the indifference curves r perfect substitutes will be straight In this case,the consumer rice of orange juice is less than that of apple juice,the consu purchase only orange juice and the price consumption curve will be on the orange juice axis"of the graph (point F).If apple juice is cheaper,the consumer will purchase only apple juice and the price consumption curve will be on the "apple juice axis"point E).If th two goods have the same price,the consumer will indifferent between the two the pric incide with the indifference curve (between E and F).See the figure below I C 3. Jane always gets twice as much utility from an extra ballet ticket as she does from an extra basketball ticket, regardless of how many tickets of either type she has. Draw Jane’s income consumption curve and her Engel curve for ballet tickets. Jane will consume either all ballet tickets or all basketball tickets, depending on the two prices. As long as ballet tickets are less than twice the price of basketball tickets, she will choose all ballet. If ballet tickets are more than twice the price of basketball tickets then she will choose all basketball. This can be determined by comparing the marginal utility per dollar for each type of ticket, where her marginal utility of another ballet ticket is 2 and her marginal utility of another basketball ticket is 1. Her income consumption curve will then lie along the axis of the good that she chooses. As income increases, and the budget line shifts out, she will stick with the chosen good. The Engel curve is a linear, upward-sloping line. For any given increase in income, she will be able to purchase a fixed amount of extra tickets. 4. a. Orange juice and apple juice are known to be perfect substitutes. Draw the appropriate price-consumption (for a variable price of orange juice) and income-consumption curves. We know that the indifference curves for perfect substitutes will be straight lines. In this case, the consumer will always purchase the cheaper of the two goods. If the price of orange juice is less than that of apple juice, the consumer will purchase only orange juice and the price consumption curve will be on the “orange juice axis” of the graph (point F). If apple juice is cheaper, the consumer will purchase only apple juice and the price consumption curve will be on the “apple juice axis” (point E). If the two goods have the same price, the consumer will be indifferent between the two; the price consumption curve will coincide with the indifference curve (between E and F). See the figure below