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Hannah has utility over cookies c and leisure 2. Her utility function is given by U(c, E) = c + 10!? (Utility) One way to
Hannah has utility over cookies c and leisure 2. Her utility function is given by U(c, E) = c + 10!? (Utility) One way to think about her utility is that one hour of leisure makes her just as well off as 10 cookies. Below is a graph of her indifference curves. Recall that indifference curves depict the combination of leisure and consumption that provide the same utility to Hannah. C a. Suppose she had 10 unit of cookies and 0 units of leisure. What is her utility? (2 pts) b. Suppose she had to choose between ((2,6) = (5, 5) or (c,) 2 (10,0). Would she prefer one bundle over the other, or would she be indifferent? If she prefers one, which bundle would she choose? (2 pts) c. Suppose she had to choose between ((2,3) = (2,8) or (6,!) = (0,10). Would she prefer one bundle over the other, or would she be indifferent? If she prefers one, which bundle would she choose? (2 pts)
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