3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). Around of golf is $40 and a night of bowling is $30. His utility function is U = 3x + 2z.What is his MRS?a.b.c.Solve for the optimal choice of golf and bowling.Draw a graph of the budget line (including intercepts), a few indifference curves, andthe optimal choice for Sam.

Given utility function is form of perfect substitute utility function, perfect substitute goods…

3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). A round of golf is $40 and a night of bowling is $30. His utility function is U = 3x + 2z. What is his MRS? a. b. Solve for the optimal choice of golf and bowling. C. Draw a graph of the budget line (including intercepts), a few indifference curves, and the optimal choice for Sam.

3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). A round of golf is $40 and a night of bowling is $30. His utility function is U = 3x + 2z. What is his MRS? a. b. Solve for the optimal choice of golf and bowling. C. Draw a graph of the budget line (including intercepts), a few indifference curves, and the optimal choice for Sam.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). A
round of golf is $40 and a night of bowling is $30. His utility function is U = 3x + 2z.
What is his MRS?
a.
b.
c.
Solve for the optimal choice of golf and bowling.
Draw a graph of the budget line (including intercepts), a few indifference curves, and
the optimal choice for Sam.

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