Question
Q1. Nimisha receives utility from days spent traveling on vacation domestically (D) and days spent traveling on vacation in a foreign country (F), as given
Q1. Nimisha receives utility from days spent traveling on vacation domestically (D) and days spent traveling on vacation in a foreign country (F), as given by the utility function U(D,F) = 10DF. In addition, the price of a day spent traveling domestically is Rs. 100, the price of a day spent traveling in a foreign country is Rs. 400, and Nimisha's annual travel budget is Rs. 4000. (Take F on Y-axis and D on X-axis) a. Illustrate the indifference map and identify at least two market baskets such that each of these two market baskets is associated with the utility of (a) 800 and (b) 1200.
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