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Sam---a friend of Ashwin---has the same amount of spare time (48 hours per month) and same amount of money to spend on entertainment ($324 per
Sam---a friend of Ashwin---has the same amount of spare time (48 hours per month) and same amount of money to spend on entertainment ($324 per month). He faces the same constraints as Ashwin. However, Ashwin and Sam have slightly different preferences over cricket (x) and movies (y).
- Sam's utility function: U(x,y) = x + y
- Ashwin's utility function: V(x,y) = min{x,y}
Each maximizes their own utility.
- What is/are the utility maximizing bundle/s for Sam?
- What is/are the utility maximizing bundles for Ashwin?
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