I need step by step solutions. Correct answer should be C. There is no Problem 3

Question

I need step by step solutions.
Correct answer should be C. There is no Problem 3..

91. In Problem 3, suppose Albert, a typical citizen, has the utility function Ulm, d, h)-m+5d-2h, where d is the number of hours per day that he spends driving around, h is the average number of hours per day spent driving around by other people in his home town, and m is the amount of money he has left to spend on other stuff besides gasoline and auto repairs. Gas and auto repairs cost SI per hour of driving. If each citizen believes that their own driving will not affect the amount of driving done by others, they will all drive D hours per day. If all eitizens drive to maximize the utility of a typical citizen, they will l drive D, hours per day, where a. Di = 5 and D2 = 0. b. D1 = D2 = 2. Di = 2 and D2 =1. Di = 4 and D2-2. D' = 2 and D2 = 0. d.

Explanation / Answer

The correct answer from the above question is option c i.e. D1 = 2 and D2 =1

As because put the value of d = 1 in equ we get and h = 1

5d2-d2-2h = 0

4d2- 2h = 0

4-2 = 2 so D2 = 2

And now for D1 put m = 1 and h = 1 in the above equation

so Answer would

D1 = 1.

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