Each week a U

$.$

S

$.$

$$consumer may prepare home cooked meals

$($

$1$

q

$)$

$$as well as eat out at a

restaurant

$($

$2$

q

$)$

$.$

$$Suppose the average price of a home cooked meal $

$2$

$5$

$,$

$$the price of eating out

is

$$

$$

$$

$$

$2$

$=$

$5$

$0$

$,$

$$and average spending is $

$5$

$0$

$0$

$$per week. The typical consumer picks

$1$

q and

$2$

q to

maximize utility function

$$

$$

$$

$$

$=$

$$

$$

$$

$$

$1$

$0$

$.$

$7$

$5$

$$

$$

$$

$$

$2$

$0$

$.$

$2$

$5$

$$subject to their budget.