Mike spends all of his income on tennis balls and football tickets. His demand c
ID: 1184325 • Letter: M
Question
Mike spends all of his income on tennis balls and football tickets. His demand curve for tennis balls is downward sloping and elastic. Holding constant Mikes income and the price of football tickets, if the price of tennis balls rises Mikes: a) Mikes total expenditure on tennis balls falls. He consumes fewer tennis balls and more football tickets. b) Mikes total expenditure on tennis balls falls. He consumes fewer tennis balls and fewer football tickets. c) Mikes total expenditure on tennis balls falls. He consumes more tennis balls and fewer football tickets. d) Mikes total expenditure on tennis balls rises. He consumes fewer tennis balls and more football tickets. e) Mikes total expenditure on tennis balls rises. He consumes fewer tennis balls and fewer football tickets. f) Mikes total expenditure or tennis balls rises. He consumes more tennis balls and fewer football tickets. g) Given the information provided, I cannot determine which of the above are true.Explanation / Answer
e) Mikes total expenditure on tennis balls rises. He consumes fewer tennis balls and fewer football tickets