Linda loves buying shoes and going out to dance. 20- Her utility function for pairs of shoes, S, and the number of times she goes dancing per month, T, is: 18- 16+ U(S, T) = 2ST 14- It costs Linda $75 to buy a new pair of shoes or to spend an evening out dancing. Assume that she has $750 to spend on shoes and dancing. E 12- 1.) Use the line drawing tool to draw Linda's budget line. Properly label this line. 10- 2.) Use the point drawing tool to locate Linda's optimal consumption bundle. Label this point 'R'. 8- 6- Carefully follow the instructions above, and only draw the required objects. 4- What is Linda's marginal rate of substitution? -O (Enter your response as an integer. Note that the minus sign is already included.) 2- 10 12 14 Shoes (S) 16 18 20 Dancing (T)
Linda loves buying shoes and going out to dance. 20- Her utility function for pairs of shoes, S, and the number of times she goes dancing per month, T, is: 18- 16+ U(S, T) = 2ST 14- It costs Linda $75 to buy a new pair of shoes or to spend an evening out dancing. Assume that she has $750 to spend on shoes and dancing. E 12- 1.) Use the line drawing tool to draw Linda's budget line. Properly label this line. 10- 2.) Use the point drawing tool to locate Linda's optimal consumption bundle. Label this point 'R'. 8- 6- Carefully follow the instructions above, and only draw the required objects. 4- What is Linda's marginal rate of substitution? -O (Enter your response as an integer. Note that the minus sign is already included.) 2- 10 12 14 Shoes (S) 16 18 20 Dancing (T)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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