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It is exactly 24 hours before Daryl's exams, and she is going to spend the entire time studying. She has an Economics exam followed directly
It is exactly 24 hours before Daryl's exams, and she is going to spend the entire time studying. She has an Economics exam followed directly by a Biology exam, with no time to study in between. Daryl's utility is represented by U (e, b) = e 2 b where e is the score on the Economics exam and b is the score on the Biology exam. Daryl wants to be an economist, so she places more weight on her Economics exam score - it has a higher exponent in her utility function, 2 instead of 1. Although Daryl cares more about Economics, she is better at Biology. Specifically, for each hour spent studying Biology, she will increase her score by 5 points, but her Economics score will only increase by 3 points for every hour spent studying Economics. Before studying, she starts at a score of 0 for each test. (a) We often write budget equations in the form p X x p Y y M, with p X , p Y indicating prices of goods X and Y ; x, y indicating quantities of those goods; and M indicating the total budget to be spent. Let's write
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