Predictions of marginal utility theory
1. A fall in price of movies=> (leads to a change in quantity demanded of movie
tickets)buy more movie tickets and less pop
Pm=8 dollars Pp=4 dollars income=40 dollars
If the price of movie tickets drop to 4 dollars...
The marginal utility per dollar of movie is larger than the marginal utility per
dollar of pop. So we need to consume more movie tickets and less pop.
** the line through the 2 points(quantity demanded of movie tickets,price
of movie tickets) is the demand curve of movie ticket. The price change results
in a change in quantity demanded of the movie tickets. But the demand curve
of pop will move leftward, because movie tickets and pop are substitutes for her. 2. A rise in price of pop