Suppose Haya has $120 of income left each week after she pays her bills and puts some

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Suppose Haya has $120 of income left each week after she pays her bills and puts some money away in a savings account, and she has two ways to spend this extra money: go to the movies, which costs $18 including popcorn and a soda, or go out to a club with several friends, which costs $33 including the cover charge and drinks. Assuming these are her only two choices to spend the extra money, what can you say about the following bundles of going to the movies and clubbing? Which of these could possibly be the utility-maximizing bundle? ki6

a. 3 movies and 2 nights out at the club

b. 2 movies and 3 nights out at the club

c. 2 movies and 2 nights out at the club

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Modern Principles Of Economics

ISBN: 9781429239974

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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