Question
Assume that Choos utility from visits to the public park and to the public library in City of Dallas is given by U (P, L)
Assume that Choos utility from visits to the public park and to the public library in City of Dallas is given by U (P, L) = PL + 10(P + L) where P = total number of visits to the park per year and L = total number of visits to the library per year. The entrance fee to the public park and the public library is $3 and $9 per visit respectively, and he can spend a combined total of $30 per year on these activities. (2 points) (1) Find an equation for the budget constraint line & slope (2) Calculate MRS (3) What is the optimal number of visits to each public service for Choo to maximize his utility (i.e. the optimal bundle of P and L)?
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