question archive Bob is choosing how many trees and how many flowering plants to buy to plant in his backyard
Bob is choosing how many trees and how many flowering plants to buy to plant in his backyard
Subject:EconomicsPrice: Bought3
Bob is choosing how many trees and how many flowering plants to buy to plant in his backyard. His utility function U=(10*T)+F+(T*F), where T= the number of trees and F=the number of flowering plants.
a. Solve for Bob's utility when
1. T=2 & F=10
2. T=3 & F=7
3. T=0 & F=15
b. Draw a graph with T on the x-axis and F on the y-axis. For each solution in part a, graph the point and draw the indifference curve associated with that point.
c. Trees cost $100 and flowering plants costs $5. Bob's total budget is $250. On the same graph as in part b, draw Bob's budget constraint.
d. For his given utility function and budget constraint, how many trees and how many trees and how many flowering plants should bob buy to maximize his utility? Draw the point and its indifference curve.
