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Paula has set aside $60 monthly budget to attend plays and watch movies. She likes plays exactly three time as much as she likes movies. (Plays and movies are perfect substitutes with 1 to 3 ratio.)
a. Draw her indifference curves.
b. If plays tickets cost $12 each and movie tickets cost $6 each, show her budget line and the highest attainable indifference curve. How many plays will she see? How many movies will she see?
c. If the price of movies decreases to 4 dollars how many movies will she see?
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