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Assume that Diego has $400 per month to divide between playingpaintball and playing golf. Assume that playing paintball costs $40and playing golf costs $20 Suppose Diego plays paintball six timesper

Assume that Diego has $400 per month to divide between playingpaintball and playing golf. Assume that playing paintball costs $40and playing golf costs $20. Suppose Diego plays paintball six timesper month and plays golf eight times per month. a. Draw Diego’sbudget constraint and show that he can afford six games ofpaintball and eight rounds of golf. b. Assume that Diego has someunexpected expenses one month and can only spend $320 that month.Draw his new budget constraint. c. As a result of the decrease inincome, Diego decides to play 11 rounds of golf and two games ofpaintball. What kind of a good is paintball? What kind of a good isgolf? d. Assume Diego has his original $400 per month to spend andthe price of paintball is still $40, but the price of golf doubles.Draw his new budget constraint.

Apr 02 2020 Read more Less More

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