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Mei has $900 kept aside to spend on her leisure time for a year by going to concerts (C) and movies (M). The price of
Mei has $900 kept aside to spend on her leisure time for a year by going to concerts (C) and movies (M). The price of movie and concert tickets are $20 and $50, respectively.
- a)When Mei maximizes utility, her marginal utility from watching movie is 8 utils (a unit of utility/satisfaction). What is Mei's marginal utility from attending concert?
- b)Assume that Mei's utility is expressed as: (, ) = 4 + 3 + , how many movies will she watch and concerts will she attend in a year? (solve by optimization technique - will demonstrate in a class)
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