In this chapter, we focused a lot on budget constraints, but time is an additional constraint that consumers face. Jackson has $40 per week to spend on leisure activities. He likes to bowl and to play racquetball. Bowling costs $4 per game, and a day pass to the racquet club costs $8. Jackson only has 7 hours of leisure time per week, and both bowling and racquetball each take 1 hour per game. Construct Jackson’s budget constraint and his time constraint on the same diagram. Consider each of the following consumption bundles that could possibly be Jackson’s utility-maximizing bundle. How does each of these bundles relate to Jackson’s two constraints?
a. Bowling twice per week and playing racquetball four times per week
b. Bowling four times per week and playing racquetball three times per week
c. Bowling six times per week and playing racquetball once per week