Suppose Haya has $120 of income left each week after she pays her bills and puts some

Question:

Suppose Haya has $120 of income left each week after she pays her bills and puts some money away in a savings account, and she has two ways to spend this extra money: go to the movies which costs $18 with popcorn and soda, or go out to a club which costs $33 including the cover charge and drinks. Assuming these are her only two choices to spend the extra money, what can you say about the following bundles of going to the movies and clubbing? Which of these could possibly be the utility-maximizing bundle?
a. 3 movies and 2 nights out at the club
b. 2 movies and 3 nights out at the club
c. 2 movies and 2 nights out at the club
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

Question Posted: