Question
Valerie takes aerobics and gym weightlifting classes pee sem. Her budget is 100 dollars. An aerobic costs 5 dollars each time and a gym weightlifting
Valerie takes aerobics and gym weightlifting classes pee sem. Her budget is 100 dollars. An aerobic costs 5 dollars each time and a gym weightlifting 3 dollars per visit. The more aerobics she does the more she enjoys weightlifting. However, she enjoys weightlifting even if she never lifts weight. The following utility function represents her;u=xy+4x where x represents the number of aerobic classes per sem and y the number of visits to the gym for weightlifting.If the cost of gym per visit changes from 4 dollars to 6 dollars, calculate the sustitution and income effect of the price change
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