Problem
1. In a week, Erin buys 1 six-pack of soda and sees 2 movies when a movie ticket is $10, soda is $5 a six-pack, and she has $25 to spend. If her budget increases and she has $50 to spend on soda and movies, what is the change in the relative price of a movie ticket? How do the marginal utility per dollar from movies and the marginal utility per dollar from soda change?
2. Gas prices send surge of travelers to mass transit As the gas price shot up to $4 a gallon, more commuters switched from cars to trains and buses. In New York and Boston, public transit ridership is up 5 percent or more so far this year.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.