Question

Janet spends her entertainment budget on movies and basketball games. Movie tickets cost $10 each and basketball game tickets cost $25 each. If Janet saw one more movie (holding the number of basketball games constant), her total utility would increase by 24. On the other hand, if she attended one more basketball game (holding the number of movies constant), her utility would increase by 55. From this information we can conclude that Janet should attend more basketball games and see fewer movies. is attending the optimal combination of movies and basketball games. should see more movies and attend more basketball games. should see more movies and attend fewer basketball games.

Answer 1

The answer is Janet should see more movies and attend fewer basketball games.

Step-by-step explanation:

In the life of every young person out there, it is their wish to live and do things which they loved while balancing the financial expenses that would be accumulated doing that. That is lesser expenses but more pleasure derived in doing what they loved (Hobbies).

In the case of Janet, inorder to reduce her utility bills while deriving more pleasure from her hobbies (watching movies and attending basketball games), she should simply see more movies and attend fewer basketball games.