Linda loves buying shoes and going out to dance. Her utility function for pairs of​ shoes, S, and the number of times she goes dancing per​ month, T,​ is: ​U(S, T)​ = 2ST with marginal​ utilities: MUS​ = 2T and MUT​ = 2S. It costs Linda ​$ to buy a new pair of shoes or to spend an evening out dancing. Assume that she has ​$ to spend on shoes and dancing. ​ 1.) Use the line drawing tool to draw​ Linda's budget line. Label this line​ 'Budget'. ​
2.) Use the point drawing tool to locate​ Linda's optimal consumption bundle. Label this point​ 'R'. Carefully follow the instructions​ above, and only draw the required objects.

See Explanation

Explanation:

Given

The following details are omitted from the question

--- Price of the Shoes

--- Spent on dancing

--- Budget on shoe and dancing

Solving (a): Her budget line

First, we determine her budget equation (B).

This is calculated by:

This gives:

Divide through by 50

--- The budget equation

See attachment for the budget line equation

Solving (a): Optimal Consumption Bundle Point

First, we determine the marginal rate of substitution (MRS) using:

This implies that:

Cross Multiply

Divide by 2

Substitute T for S in the budget equation

Recall that:

So, the point if optimal consumption bundle is (5,5)

See attachment for point R

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answer; normative economics;