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Rushdan loves video games and movies. His utility function for Games, 'G', and Movies 'M' is (,) = 2 with marginal utilities = 2 and
Rushdan loves video games and movies. His utility function for Games, 'G', and Movies 'M' is (,) = 2 with marginal utilities = 2 and = 2. It costs Rushdan $50 to buy a new video game and $50 for a movie. a. Given an income of $500, draw Rushdan's budget line and label it 'Budget' b. Calculate Rushdan's optimal consumption bundle and label it on the graph. Draw an indifference curve to indicate the optimal consumption bundle. c. What is Rushdan's marginal rate of substitution?
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