A student spends 8 hours per day listening to music. M hours are devoted to Mozart...
A student spends 8 hours per day listening to music. M hours are devoted to Mozart and B hours to Beethoven. The student’s utility function is , where Umeasures utility.
- Find the equation of the indifference curves corresponding to utility levels of 4 and 5.
- Write an equation for the student’s budget constraint.
Draw on a diagram your answers to a) and b).
On the basis of your diagram, what are the approximate utility-maximizing quantities of Mand B?
Homework Answers
(a) The utility is given as 
. At U=4, the indifference curve equation would be 
or 
. At U=5, the indifference curve equation would be 
or 
.
(b) The student have a total of 8 hours, in
which the student listen M hours to Mozart and B hours to
Beethoven. This means that 
, which is the required budget constraint.
(c) The graph is as below.
(d) The approximate utility maximizing bundle would be (M=2,H=6). The utility is maximum on the budget line where the indifference curve is tangent to the budget line. That seem to be on the point (2,6).
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A student spends 8 hours per day
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