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Consider two young twin brothers named Lucas and Joshua. They allocate their income, coming from birthday gifts and weekly allocations, towards games and candies. Lucas

Consider two young twin brothers named Lucas and Joshua. They allocate their income, coming from birthday gifts and weekly allocations, towards games and candies. Lucas and Joshua spend all their money on games and candies and decide jointly on money allocation. Their budget constraint is, therefore: m = pGG + pCC Note here that G denotes money spent on games, and C denotes money spent on candies. In this example: U(G, C) = 200[G 0.5 + C 0.5 ] 4 + 500 m = 600 pG = 30 pC = 15

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