Question

Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football...

Tom’s income is $600. Assume that he consumes only two goods, watching basketball games and football games. Tom had the same Total Utility for the following five options (i.e. he is indifferent between these options). Now assume that basketball game ticket cost $10 and football game ticket cost $10. Draw indifference curve and budget constraints and find out his utility maximizing combination.

Options

# Basketball games

#Football games

1

100

10

2

60

15

3

30

30

4

15

50

5

10

90
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