Question
Julian loves to rent movies and watch them at home, but he also loves watching them in theaters. At the moment, he is considering watching
Julian loves to rent movies and watch them at home, but he also loves watching them in theaters. At the moment, he is considering watching movies twice a week for one year by himself. He will rent 52 movies and watch them at home and he will watch 52 movies at a move theater.
To complicate matters, there are two girls that like Julian: Juanna and Monica. Juanna prefers to go to 13 movies at the movie theater and watch 91 movies as rentals at home. On the other side of the spectrum Monica only enjoys watching movies in the theater. She prefers to see all 104 movies at the movie theatre.
If Julian starts dating either of them, movie watching will become a joint experience. He fancies Juanna, Monica, and staying single equally, and he would not date both ladies at the same time. Consequently, each movie watching arrangement pleases him the same.
Consider the consumption bundles that lay on one of Julian's indifference curves.
Move point A to represent Julian's consumption bundle if he dates Juanna.
Move point B to represent Julian's consumption bundle if he stay single.
Move point C to represent Julian's consumption bundle if he dates Monica.
A B C 104 91 78 65 Quantity of movie rentals 52 39 26 13 O 13 26 39 52 65 78 91 104 Quantity of movie ticketsStep by Step Solution
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