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After getting serious, Pat and Sam decide on (kit) together as a couple. The couple acts like an individual with utility function WI(rs) = 4r
After getting serious, Pat and Sam decide on (kit) together as a couple. The couple acts like an individual with utility function WI(rs) = 4r 3t and income 20. The couple's chosen bundle is then split equally between the partners. In other words, the partners combine their incomes (20), choose a bundle to maximize the sum of their individual utilities (ur(k.s) = us(cs) UP. (rs)), and they always go out to eat and travel together (if (rat) is chosen by the couple, then each partner's bundle is (r/2,t/2))
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