ECONOMICS 204
The city of Vive is committed to creating a city where people enjoy a healthy lifestyle. It recently opened a public golf course and a swimming pool....
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The city of Vive is committed to creating a city where people enjoy a healthy lifestyle. It recently opened a

public golf course and a swimming pool. The golf course charges $30 for a round of golf and allows each golfer to play a round of golf per day. The user fee of the pool is $10 for a day. Three consumers, Gray, Susan and Travis, each have a monthly budget of $180 to enjoy those new facilities.


a) Travis loves both golf and swimming and his preferences over those activities can be described by utility function u(S,G)= S^(1/3)G^(2/3) , where S is the number of days he enjoys swimming and G is the number of days he enjoys golfing. His marginal utility of swimming is MUs= G^(2/3)/ 3S^(2/3)

his marginal utility of a round of golf is MUg = 2S^(1/3)/3G^(1/3) . Draw an indifference curve diagram (place swimming on the horizontal axis) and show his optimal bundle. How many days does he enjoys each activities on average every month?


b) Julien wants to participate in a golf tournament sponsored by his company, but does not want to give up swimming. He decided to play golf twice as many days as he enjoys swimming. Draw an indifference curve diagram (place swimming pool on the horizontal axis) and show his optimal bundle. How many days does Julien enjoy each activities on average (i.e., the answer can be fraction) every month?


c) Donna loves golf but is afraid of water. Draw an indifference curve diagram (place swimming pool on the horizontal axis) and show her optimal bundle. How many days does she enjoy each activities on average every month? 

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