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meat and potatoes maximizes her utility



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Ch03
sol 03, sol 03, Ch07
meat and potatoes maximizes her utility
With the price of potatoes at $4, Connie may buy either 50 pounds of meat or 50 pounds of potatoes, or any combination in between. Seethe diagram below. She maximizes utility at
U  100 at point A when she consumes 50 pounds of meat and no potatoes. This is a corner
solution.

15. Jane receives utility from days spent traveling on vacation domestically (D) and days spent
traveling on vacation in a foreign country (F), as given by the utility function U(D,F) 10DF.
In addition, the price of a day spent traveling domestically is $100, the price of a day spent
traveling in a foreign country is $400, and Jane’s annual travel budget is $4000.
a. Illustrate the indifference curve associated with a utility of 800 and the indifference curve

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