The hulk has a 1000 monthly budget for wellness which he


The Hulk has a $1000 monthly budget for wellness, which he spends on gym visits and vitamin supplements. His preferences over gym visits and vitamin supplements are rational, monotonic and convex. When each visit to the gym cost $10, he goes to the gym 30 times a month. The gym decides to increase the price of a visit to $15. Fearing it will lose customers, the gym decides to also give its loyal customers, like the Hulk, a $150 per month cash gift. Is the Hulk better or worse off after the price increase and cash gift than he was before the gym raised its price? Does he go to the gym more, less or the same number of times? Explain and graphically illustrate your answers (all on one graph)

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Business Economics: The hulk has a 1000 monthly budget for wellness which he
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