Question

The quantity consumed of a commodity does not have to be an integer.
Problem1
Consider two commodities: classical records and rock and roll records. Suppose that
Melody loves classical music more and she always thinks that 2 rock and roll records are a
perfect substitute for 1 classical records. Assume that she prefers more to less.

Task 1:

SupposeMelody faces prices from a record store at $10 per record for classical
records and $20 per record for rock and roll records and she has an income of $60 to spend
on records. How much does she demand of each types of records? Illustrate your answer
in a commodity space with classical record being commodity 1 and rock and roll record being commodity 2.

Task 2:

Hypothetically, the store can put the rock and roll records on sale at $4 per
record, keeping the price of classical records at $10 per record. How much wouldMelody
demand of each types of record in this hypothetical case, assuming an income of $60 as
before? Illustrate your answer in a commodity spacewith classical record being commodity
1 and rock and roll record being commodity 2.

Answer 1