# Question

Will and Becky are two college students who are planning on Sunday how much they will study on Monday for a test on Tuesday. Will weighs future utility the same as current utility. Becky is more impulsive. She puts weight 1 on current period utility but only weight w on utility earned in future periods where 0 < w < 1. Let s be the cost in terms of utility on Monday from studying. Let b be the benefit in terms of utility on Tuesday from studying and thus performing well on the test.

a. Under what condition on s and b would will plan to study for the test? What condition is required for him to carry through on his plan?

b. Under what conditions on s and b would Becky plan to study for the test? What condition is required for her to carry through on her plan?

a. Under what condition on s and b would will plan to study for the test? What condition is required for him to carry through on his plan?

b. Under what conditions on s and b would Becky plan to study for the test? What condition is required for her to carry through on her plan?

## Answer to relevant Questions

Assume consumers are choosing between housing services (H) measured in square feet and consumption of all other goods (C) measured in dollars.a. Show the equilibrium position in a diagram.b. Now suppose the government agrees ...Currently, Paula is maximizing utility by purchasing 5 TV dinners (T) and 4 Lean Cuisine meals (L) each week.a. Graph Paula’s initial utility-maximizing choice.b. Suppose that the price of T rises by $1 and the price of L ...In Chapter 3 we introduced the concept of consumer surplus as measured by the area above market price and below an individual’s demand for a good. This problem asks you to think about that concept for the market as a ...Sophia is a contestant on a game show and has selected the prize that lies behind door number 3. The show’s host tells her that there is a 50 percent chance that there is a $15,000 diamond ring behind the door and a 50 ...Three department stores, A, B, and C, simultaneously decide whether or not to locate in a mall that is being constructed in town. A store likes to have another with it in the mall since then there is a critical mass of ...Post your question

0