Two services-hair coloring and pedicure

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Reference no: EM131002123

Chris spends $300 per year to buy two services, Hair Coloring (HC) and Pedicure (PC).

a) Suppose HC costs $50 per visit and PC costs $30 per visit. Write and Draw his budget constraint. HC PC.

b) Suppose also his utility function is given by the equation U(PC, HC) = 10HC + 6 PC. What combination of PC and HC should Chris buy to maximize his utility? What is the level of utility?

c) The Pedicure shop that Chris goes to has a special promotion. For every 5visits he buys, he will get a 6th visit for free. Draw his budget constraint. What combination of PC and HC should Chris buy to maximize his utility?

Reference no: EM131002123

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