Jane has the following utility function over playing golf and playing tennis: U

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Jane has the following utility function over playing golf and playing tennis: U = 4(GT)1/2 where G is a game of golf and T is a tennis match. The marginal utilities arc given by MUG = 2(T/G)l/2 and MUT = 2(G/T)1/2 The price to play a game of golf is $120 and to play a tennis match is $30. Jane has $1,200 allocated to these sports. (Assume that she can play partial matches or rounds.) Draw the budget constraint. (Put Golf games on the X axis and Tennis matches on the Y axis) Draw the indifference curve that includes the optimal bundle of tennis matches and golf games. What is the Marginal Rate of Substitution of tennis games for Golf games (MRS) at any point on the indifference curve? What is the optimal bundle "J" (how many tennis matches and golf games)? What is the MRS at the optimal bundle "J"? Suppose the price of golf games increases. Show on your graph the change to the budget constraint. Draw an indifference curve that includes the new optimal bundle? How does the MRS of the optimal bundle change? Increase (more negative), Decrease (less negative), or No change

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