Final grade BRS응응응응ㅇ 70 60 40 20 10 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hours of study per day Study hours 0 1 2 3 4 5 Grade FULLMAREN 6 7 8 9 10 11 12 13 14 15 or more 0 20 33 42 50 57 63 69 74 78 81 84 86 88 89 90 a. Show the optimum using indifference curves and a feasible set diagram. b. Show how this optimum might change if Alexei's indifference curves were (i) shallower, and (ii) steeper. c. How would you interpret these changes in gradient? What do they suggest about Alexei's preferences?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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6. Consider Alexei's optimal choice of free time and grades, below:
100
90
80
Final grade
70
60
50
40
30
20
10
0
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Hours of study per day
Study hours 0 1 2 3 4 5
Grade
6 7 8 9 10 11 12 13 14 15 or more
0 20 33 42 50 57 63 69 74 78 81 84 86 88 89 90
a. Show the optimum using indifference curves and a feasible set diagram.
b. Show how this optimum might change if Alexei's indifference curves were (i) shallower,
and (ii) steeper.
c.
How would you interpret these changes in gradient? What do they suggest about Alexei's
preferences?
Transcribed Image Text:6. Consider Alexei's optimal choice of free time and grades, below: 100 90 80 Final grade 70 60 50 40 30 20 10 0 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hours of study per day Study hours 0 1 2 3 4 5 Grade 6 7 8 9 10 11 12 13 14 15 or more 0 20 33 42 50 57 63 69 74 78 81 84 86 88 89 90 a. Show the optimum using indifference curves and a feasible set diagram. b. Show how this optimum might change if Alexei's indifference curves were (i) shallower, and (ii) steeper. c. How would you interpret these changes in gradient? What do they suggest about Alexei's preferences?
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