Aiden is an Economics student who has exactly one week to study for his Microeconomics and...

 

Transcribed Image Text:

Aiden is an Economics student who has exactly one week to study for his Microeconomics and Macroeconomics exams. Revising each Micro topic requires 4 hours and revising each Macro topic requires 9 hours. There is also a level of concentration demanded by each subject. Each Micro topic demands 5 units of concentration while each Macro topic demands 2 units of concentration. Suppose that Aiden has 78 units of concentration to spend over the week and wants to sleep 7 hours every night. For all following questions, round answers to 3 decimal places. Assume that Micro and Macro topics are perfectly divisible goods. a) Ignoring his concentration constraint, what is the difference between the maximum number of Micro and Macro topics Aiden has time to revise for? b) Ignoring his time constraint, what is the difference between the maximum number of Micro and Macro topics that Aiden has the concentration to revise for? c) Let a be the number of Micro topics studied and y be the number of Macro topics studied. At what point (x, y) do the budget lines for time and concentration intersect? (x, y) = ( d) If Aiden wants to revise at least 3 Micro topics, what is the maximum number of Macro topics he will be able to revise? e) If Aiden wants to revise at least 0 Macro topics, what is the maximum number of Micro topics he will be able to revise? Suppose now that it is possible for Aiden to "find" more time to study by choosing to sleep less. However, for each hour of sleep that he sacrifices during the week, he loses one unit of concentration. For instance, if Aiden usually has 100 hours of time and has 100 units of concentration during the week, sacrificing 10 hours of sleep will result in 110 hours of time and 90 units of concentration. f) If Aiden sacrifices one hour of sleep each night, where will the concentration and time budget lines now intersect? (x, y) = g) What if Aiden sacrifices 90 minutes of sleep each night? (x, y) = h) At some point, Aiden will have sacrificed so much sleep that the time constraint becomes irrelevant. How many total hours of sleep during the week must Aiden sacrifice for this to occur? Aiden is an Economics student who has exactly one week to study for his Microeconomics and Macroeconomics exams. Revising each Micro topic requires 4 hours and revising each Macro topic requires 9 hours. There is also a level of concentration demanded by each subject. Each Micro topic demands 5 units of concentration while each Macro topic demands 2 units of concentration. Suppose that Aiden has 78 units of concentration to spend over the week and wants to sleep 7 hours every night. For all following questions, round answers to 3 decimal places. Assume that Micro and Macro topics are perfectly divisible goods. a) Ignoring his concentration constraint, what is the difference between the maximum number of Micro and Macro topics Aiden has time to revise for? b) Ignoring his time constraint, what is the difference between the maximum number of Micro and Macro topics that Aiden has the concentration to revise for? c) Let a be the number of Micro topics studied and y be the number of Macro topics studied. At what point (x, y) do the budget lines for time and concentration intersect? (x, y) = ( d) If Aiden wants to revise at least 3 Micro topics, what is the maximum number of Macro topics he will be able to revise? e) If Aiden wants to revise at least 0 Macro topics, what is the maximum number of Micro topics he will be able to revise? Suppose now that it is possible for Aiden to "find" more time to study by choosing to sleep less. However, for each hour of sleep that he sacrifices during the week, he loses one unit of concentration. For instance, if Aiden usually has 100 hours of time and has 100 units of concentration during the week, sacrificing 10 hours of sleep will result in 110 hours of time and 90 units of concentration. f) If Aiden sacrifices one hour of sleep each night, where will the concentration and time budget lines now intersect? (x, y) = g) What if Aiden sacrifices 90 minutes of sleep each night? (x, y) = h) At some point, Aiden will have sacrificed so much sleep that the time constraint becomes irrelevant. How many total hours of sleep during the week must Aiden sacrifice for this to occur?

Answer rating: 100% (QA)

SOLUTION a Ignoring his concentration constraint Aidens time constraint is that he has 7 days to study and wants to sleep 7 hours every night This means he has 7 x 24 7 7 x 17 119 hours available for ... View the full answer