Now suppose that Jason's utility is entirely based on number of hours of skiing (X) and skating (Y). 3 hours of skating gives him the same utility as 8 hours of skiing. 11. Use max {ax; bY} function to describe his preferences. 12. Solve for his equilibrium consumption bundle in the general form. (Hint: you have to look at 3 different cases) 13. Suppose that 1 hour of skating costs him 20 and 1 hour of skiing costs him $10. Suppose that he has $800 to grond. What will he and un choos in this coca?

Now suppose that Jason's utility is entirely based on number of hours of skiing (X) and skating (Y). 3 hours of skating gives him the same utility as 8 hours of skiing. 11. Use max {ax; bY} function to describe his preferences. 12. Solve for his equilibrium consumption bundle in the general form. (Hint: you have to look at 3 different cases) 13. Suppose that 1 hour of skating costs him 20 and 1 hour of skiing costs him $10. Suppose that he has $800 to grond. What will he and un choos in this coca?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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