Answer to Question #1077 in Microeconomics for mothusi ditlou
Jane receives a utility from days spent traveling on vacation domestically (D) and days spent travelling on vacation in a foreign country(F), a given by the utility function u(D,F)=10DF. in addition, the price of a day spent traveling domestically is US$100, foreign country is US$400, and Jane's annual budget is US$4000.
a. illustrate the indifference curve associated with a utility of 800 and the indifference curve associated with utility of 1200.
b. Graph jane's budget line on the same graph.