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6-) Suppose you have $2000 to spend on entertainment for the entire year. You can watch a movie at a theater for $10/mov
Posted: Thu May 05, 2022 6:44 am
by answerhappygod
- 6 Suppose You Have 2000 To Spend On Entertainment For The Entire Year You Can Watch A Movie At A Theater For 10 Mov 1 (55.5 KiB) Viewed 34 times
6-) Suppose you have $2000 to spend on entertainment for the entire year. You can watch a movie at a theater for $10/movie or hang out with friends at a Starbucks and drink strawberry frappuccino for $5 each. a-) Write down the budget equation. b-) Draw your budget line for these two goods. (Draw a graph, label the indices and show at least two points with exact intercepts) c-) If your utility function is U-S*M*E, where M stands for number of movies and F stand for number of frappucinos, how many movies will you watch and how many frappuccinos will you drink? (Show your Lagrange, derivatives, and solve) I d-) What will be your total utility?