Question

Assume a round of golf requires four hours of leisure time, and attending a concert requires two hours. If the price of a round of golf is $40 and the price of a concert is $80, ceteris paribus, Joe will play

Answer 1

Answer:

Step-by-step explanation:

Relatively less golf and attend relatively more concerts whenever his leisure time becomes more scarce.

- This is called the marginal utility, that with every successive unit that utility decreases. With each passing hour while playing golf Joe is less inclined to play for an extra hour. When leisure time is less than 2 hrs he is equally likely to opt out of golf for concert.