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Elmer Fudd likes to hunt “wabbits” but also likes to hunt duck. His utility function can be expressed as U(W,D)= 1/(-(2W^2+D^2 )^2 ).
–Solve for the marginal utility of both “wabbits” and duck.
–Write the tangency condition, what can you tell me about Elmer’s preferences?
–Suppose that the price of hunting Duck is $5.00 and the price of hunting “wabbit” is $3.25. If Elmer has $150.00 to spend how much duck and “wabbit” should he hunt?
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increase because the total amount of human capital in the country will increase as the new owners learn how to farm.
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