2. Half-hours (per month) a) Max enjoys windsurfing and snorkeling. He obtains the following utility from each of these sports: b) 1 2 3 4 5 6 7 8 9 TUW 60 110 150 180 200 206 211 215 218 MUW 60 50 40 30 20 6 5 4 3 MUW Pw 6 5 4 3 2 .6 .5 .4 .3 MUW Pw' 12 10 8 6 4 1.2 2 .8 .6 TUS 20 38 53 64 70 75 79 82 84 MUS 20 18 15 11 $35 = $10(3) + $5 (1) 5 4 3 2 MUS Ps MUS = MUW and Total Utility is maximized. TU = 170 utils. Pw Ps 4 3.6 3 2.2 1.2 1 86 .8 Calculate Max's marginal utility from windsurfing and from snorkeling. (You may add this information to the above table with columns for the MU for windsurfing and the MU for snorkeling. .6 .4 If Max has $35 to spend, and equipment for windsurfing rents for $10 per half- hour, while snorkeling equipment rents for $5 per half-hour, how long will Max choose to windsurf? 3 Snorkel? 1 Why? (Compare columns 4 and 8). When all of the income is spent... What is Max's budget constraint? Explain verbally and write the equation for his budget constraint below. B=I=PwQw + PsQs