Budget constraint and optimal consumption bundle

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Patrick chooses to use his time ‘free-time’: (a) working out or (b) reading. Patrick currently has 20 hours a week to allocate to these two activities. It takes Patrick 1.5 hour to work out and .5 hours to read. Patrick enjoys both activities, but he has recently focused more on improving his thought processes; therefore, he spends more time ‘reading’. Patrick feels that the optimal allocation of his time, based upon his budget constraints, is to allocate 12.5 hours to reading and 7.5 hours to working out. (a) Draw Patrick's budget constraint and optimal consumption bundle such that the number of hours that he spends working out is on the x-axis and the number of hours that he spends on reading is on the y-axis.

Reference no: EM131109635

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