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Tien receives utility from days spent traveling on vacation domestically (D) and days spent traveling on vacation in a foreign country (F), as given by

Tien 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)=5DF. In addition, the price of a day

spent traveling domestically is $100, the price of a day spent traveling in a foreign country is $400, and Tien's

annual travel budget is $4000.

a. Illustrate the indifference curve associated with a utility of 800 and the indifference curve associated

with a utility of 1200.

b. Graph Tien's budget line on the same graph.

c. Can Tien afford any of the bundles that give her a utility of 800? What about a utility

of 1200?

d. Find Tien's utility maximizing choice of days spent traveling domestically and days spent in a foreign

country.

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