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Q1 (17 marks) Beyonce Knowles and J ayZ are single and considering whether to get married. They also have to decide how to employ their
Q1 (17 marks) Beyonce Knowles and J ayZ are single and considering whether to get married. They also have to decide how to employ their 8 working hours a day. They can either record music (1) or stay at home producing household goods (h). Thus, their time constraint is as follows: I+h=8 They are both very successful singers and their wages in the music industry are identical Wu 2 wb = 10. Both Beyonce and Jay-Z get utility out of consuming household goods 01) and consumption goods (x). They can use their salaries to purchase consumption goods at a price of 1. Their utility functions are: Uh: lebx+h Hi 2 16xjxJ-2+h (i) Should Beyonce and Jay-Z get married? Explain. (4 marks)
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