Business
Business, 12.03.2021 15:40, derpoofoofderp

Linda loves buying shoes and going out to dance. Her utility function for pairs of​ shoes, S, and the number of times she goes dancing per​ month, T,​ is: ​U(S, T)​ = 2ST with marginal​ utilities: MUS​ = 2T and MUT​ = 2S. It costs Linda ​$ to buy a new pair of shoes or to spend an evening out dancing. Assume that she has ​$ to spend on shoes and dancing. ​ 1.) Use the line drawing tool to draw​ Linda's budget line. Label this line​ 'Budget'. ​
2.) Use the point drawing tool to locate​ Linda's optimal consumption bundle. Label this point​ 'R'. Carefully follow the instructions​ above, and only draw the required objects.

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Linda loves buying shoes and going out to dance. Her utility function for pairs of​ shoes, S, and th...

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