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Jane receives utility from days spent traveling on va- cation domestically (D) and days spent traveling on vacation in a foreign country (F), as given by the util- ity 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 associated with a utility of 1200.
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Jane receives utility from days spent traveling on va- cation domestically (D) and days spent travel...
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