Mathematics, 15.12.2020 04:10 daltondespain2
Rosa 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) = 3ST, her marginal utility from shoes is MUs= 3T, and her marginal utility from dancing is MUt =3S. She has $750 to spend on shoes and dancing.
1) What is the equation for her budget line if T -- the number of times she goes dancing per month -- is on the vertical axis?
a) T = 10 β 3S
b) T = 20 β 3S
c) T = 30 β 3S
d) T = 40 β 1S
e) T = 40 β 2S
Answers: 2
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