Question
Leo Keen likes to consume two goods, assists (x) and goals (y). He has a utility function: (,)= 2 . Jonathan has an income of
Leo Keen likes to consume two goods, assists (x) and goals (y). He has a utility function: (,)=2.
Jonathan has an income of 90 minutes to spend on goals and assists. If the "price" of an assist is 20 minutes, and the price of a goal is 60 minutes, how many goals will he consume? how many assists?
What is his total utility with this bundle?
Illustrate your solution with a diagram including an indifference curve and budget constraint.
(assume he can consume fractions of a goal or assist)
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Economics Today The Macro View
Authors: Roger LeRoy Miller
18th Edition
0133884872, 978-0133884876
