Problem 1
Karel can buy věnečky V or trubička T. Prices: py = 15 and pj — 10 CZK. His income is 150 CZK. He has only 60 minutes time for eating it. It takes 10 minutes to eat one trubička. It takes 5 minutes to eat one věneček.
Draw his budget set.
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Problem 2
Pavel eats only hotdogs at 12.00 at one place in Brno and Prague. The price of one hotdog is 10 CZK. His income is 50 CZK.
Draw Pavel's daily budget set.
Problem 3
These are utility functions of selected students:
Tom: (7(x,y) = xy;
Jerry: U(x,y) = xy(l - xy);
Peter: C(x,y) = lOOOxy + 2000;
Fred: U{x,y) = -1/(10+ xy);
Pat: (7(x,y) = x/y;
Martin: t/(x,y) = —xy;
Which students have the same shape of indifference curves? Which students have the same preferences?
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