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1 Economics 3. Kionda has been saving for vacation. She has $1,200. The price of hotel per day is $200 and the activities she wants
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Economics 3. Kionda has been saving for vacation. She has $1,200. The price of hotel per day is $200 and the activities she wants to participate in cost $100 each. b. Suppose her utility function over hotel stays and activities is; U(h, a) = h1/43/4 c. Take the derivatives of the Lagrangian and solve for optimal hotel and activi- ties. d. Kionda got a bonus from work, so she is now staying 5 days at the hotel. Assuming the utility function from part (b), how much was her bonus? How many activities will she doStep by Step Solution
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