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Jordan is a college student who receives a monthly stipend from his parents of $1000. Jordan uses the stipend to pay rent for housing and to go to the movies (assume that all others have been paid). In the town where Jordan goes to college, each square foot of rental housing costs $1.50 per month. Each movie he attends costs $10. In your answer below, think of square feet as x1 (and hence along the horizontal axis) and movies as x2 (on the vertical axis). a) what is the expression for Jordan's budget constraint? b) draw a graph of this budget constraint c) what is the maximum number of sq feet of housing he can purchase given his stipend? d) what is the maximum number of movies he could purchase? e) if the price of movies increases to $12 and price of rental housing increases to $2.00 per sq foot, what happens to Jordan's budget constraint? Draw this new budget on your graph.
HS's board of directors is controlled by George Waltson, the majority shareholders, who also acts as the chief executive officer.
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