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Joan is on summer break and spends most of her time either playing video games or browsing the internet Her utility function is where represents the hours spent browsing the

Joan is on summer break and spends most of her time either playing video games or browsing the internet. Her utility function is U(n-2) = 3q0.2q28, where qi represents the hours spent browsing the internet and g2 hours playing video games. Joan does not have a budget constraint but she has 15 hours to spend on both activities. (a) (5 points) Write the equation for one of Joan's indifference curves when the level of utility is equal to 100. (b) (5 points) Write Joan's time constraint c) (10 points) Find the amount of hours that Joan will spend on each activity that maximizes her utility and satisfies her time constraint. Use either the substitution or Lagrangian method. (d) (5 points) Can Joan afford any bundle that yields a utility of 50? Explain

Apr 02 2020 View more View Less

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