Connect the dots in the graph you created to complete Tyler’s demand curve for movie tickets.

Consider the following graph, which illustrates Tyler's preferences for DVD rentals and in-theater movie tickets:

 

 

 

 

 

 

Suppose that DVD rentals always cost $1 , and that Tyler's income is $100 per week.

a. If the price of a movie ticket is $10, draw Tyler's budget line. Be very careful to draw to scale. How many movies does he see in the theater? b. Begin to draw Tyler's demand curve for movies by creating a new set of axes with price on the vertical axis and the quantity of movies on the horizontal axis. Plot a point that shows how many movies Tyler demands when the price of movies is $10. c. The movie theater changes the price of tickets to $12.50. Modify the graph provided to reflect this price change. Then add a point to your demand curve graph to show how many movies Tyler demands at a price of $12.50. d. Tyler's mother gives him a discount card that allows him to purchase movie tickets for $7 .50 each. Modify the graph provided to reflect this price change. Then add a point to your demand curve graph to show how many movies Tyler demands at a price of $7 .50. e. Connect the dots in the graph you created to complete Tyler's demand curve for movie tickets.

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