image
Figure 5.9 Effects of a Fall in the Price of Basketball Tickets
When the price of basketball game tickets decreases, Carlos’s budget constraint rotates outward from BC1 to BC2. The total effect of the price change is shown by the change in his optimal consumption bundle from point A to point B. In particular, the number of basketball tickets Carlos buys increases from 3 to 5, and the number of concert tickets he buys increases from 5 to 6.