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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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Answers: 1
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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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