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Unformatted text preview: (b) If Betty was made better o, how many movies would you expect her to see? Why? (c) If Betty was not made better o, how many movies would you expect her to see? Why? (d) Alfreds parents are concerned about their sons fondness for movies. They are particularly worried that, under the new policy of coupon books, Alfred may reduce his spending on other goods to watch more movies. Is this likely to occur? Why or why not? (e) Now suppose the theater changes its policy and charges $3 per show for the rst 10 movies seen per term and $2.40 for each additional movie thereafter, without limit. Should Alfreds parents be more or less concerned that he might reduce his spending on all other goods to see more movies? Why? 1...
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This note was uploaded on 08/27/2011 for the course ECON 104 taught by Professor Staff during the Winter '10 term at UCSB.
- Winter '10