Question
Your sweetheart Kris (Kristopher or Kristine as you prefer) enjoys two kinds of dates: a one-hour coffee rendezvous at Aromas (P A = $12), and
Your sweetheart Kris (Kristopher or Kristine as you prefer) enjoys two kinds of dates: a one-hour coffee rendezvous at Aromas (PA= $12), and going off campus for dinner (PD= $24).Kris' utility function is U = (1/2)ln(A) + (1/3)ln(D).Your job is to figure out how to allocate this semester's$480 love budgetbetween these two kinds of dates in a way that will maximize Kris' utility.
In your graphs and calculations, put A on the X-axis.
Type the combination of A and D will maximize Kris' utility, given the budget the two of you have to spend here.
In your written work,draw a graphthat shows the budget constraint, an indifference curve that passes through the suboptimal bundle from part b), and an indifference curve that passes through your optimal bundle.As before, be sure to label all the interesting points: intercepts, intersections, etc.
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