Ellie enjoys basketball (b) and soccer (s) according to the function UU(bb, ss) = 3bb + 4ss. She has $120 to spend on lessons and each basketball or soccer lesson costs $30. a. What does Ellie’s utility function say about her MRS of basketball for soccer? What do her indifference curves look like? b. How many basketball and soccer lessons should Ellie buy to maximize her utility? c. Would the number of basketball lessons Ellie buys change if she had more money to spend? Explain your answer.

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Ellie enjoys basketball (b) and soccer (s) according to the function UU(bb, ss) = 3bb + 4ss. She has
$120 to spend on lessons and each basketball or soccer lesson costs $30.
a. What does Ellie’s utility function say about her MRS of basketball for soccer? What do her
indifference curves look like?
b. How many basketball and soccer lessons should Ellie buy to maximize her utility?
c. Would the number of basketball lessons Ellie buys change if she had more money to spend?
Explain your answer.

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