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Jane receives utility from days spent traveling on vacation domestically(D) and days spent traveling on vacation in a foreign country(F), as given by the utility function Upper U left parenthesis Upper D comma Upper F right parenthesis equals 10 DFU(D,F)=10DF.
In addition, the price of a day spent traveling domestically is $ 100, the price of a day spent traveling in a foreign country is $400 andJane's annual travel budget is$4000.
An indifference curve associated with a level of utility equal to 800 and an indifference curve associated with utility of 1200 are illustrated in the figure to the right.Using the line drawing tool, graph Jane's budget line. Label this line Upper L 1L1. Carefully follow the instructions above, and only draw the required object.
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