Let's go back to better times for Radamel, before his injury. Remember he had a weekly...

   

Transcribed Image Text:

Let's go back to better times for Radamel, before his injury. Remember he had a weekly allowance of $200 and an hourly wage of $50. Suppose that Radamel's utility C0.5L function is uR = • In one of his trips, Radamel was bit by a tik-tik fly who infected him with trypanosomes, a bacterium that causes the sleeping sickness. Hence, now his sleeping hours increased, bringing down his available "awake" hours to 70. o Draw Radamel'snew budget constraint. Let's go back to better times for Radamel, before his injury. Remember he had a weekly allowance of $200 and an hourly wage of $50. Suppose that Radamel's utility C0.5L function is uR = • In one of his trips, Radamel was bit by a tik-tik fly who infected him with trypanosomes, a bacterium that causes the sleeping sickness. Hence, now his sleeping hours increased, bringing down his available "awake" hours to 70. o Draw Radamel'snew budget constraint.