Nancy Lerner is trying to decide how to allocate her time in studying for her economics course. There are two examinations in this course. Her overall score for the course will be the minimum of her scores on the two examinations. She has decided to devote a total of 1,200 minutes to studying for these two exams, and she wants to get as high an overall score as possible. She knows that on the first examination if she doesn’t study at all, she will get a score of zero on it. For every 10 minutes that she spends studying for the first examination, she will increase her score by one point. If she doesn’t study at all for the second examination she will get a zero on it. For every 20 minutes she spends studying for the second examination, she will increase her score by one point. (a) On the graph below, draw a "budget line" showing the various com-binations of scores on the two exams that she can achieve with a total of1,200 mimutes of studying. On the same graph, draw two or three "indif-ference curves" for Nancy. On your graph, draw a straight line that goesthrough the kin les in Nancy's indifference curves. Label the point wherethis line hits Nancy's budget with the letter A. Draw Nancy's indifferencecurve through this point.Score on Test 28060402020 40 60 80100120Score on Test 1(b) Write an equation for the line passing through the kinks of Nancy'sindifference curves.(c) Write an equation for Nancy's budget line..(d) Solve these two equations in two unknowns to determine the intersee-tion of these lines. This happens at the point (21, 2)(e) Given that she spends a total of 1,200 minutes studying, Nancy willmaximize her overall score by spending.minutes studying for thefirst examination andmimites studying for the second examina-tion.

"Since you have posted a question with multiple subpart,we will solve first three sub-parts for…

Answered: Nancy Lerner is trying to decide how to…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 12PA

See similar textbooks

Related questions

Question

100%

Nancy Lerner is trying to decide how to allocate her time in studying for her economics course. There are two examinations in this course. Her overall score for the course will be the minimum of her scores on the two examinations. She has decided to devote a total of 1,200 minutes to studying for these two exams, and she wants to get as high an overall score as possible. She knows that on the first examination if she doesn’t study at all, she will get a score of zero on it. For every 10 minutes that she spends studying for the first examination, she will increase her score by one point. If she doesn’t study at all for the second examination she will get a zero on it. For every 20 minutes she spends studying for the second examination, she will increase her score by one point.

(a) On the graph below, draw a "budget line" showing the various com-
binations of scores on the two exams that she can achieve with a total of
1,200 mimutes of studying. On the same graph, draw two or three "indif-
ference curves" for Nancy. On your graph, draw a straight line that goes
through the kin les in Nancy's indifference curves. Label the point where
this line hits Nancy's budget with the letter A. Draw Nancy's indifference
curve through this point.
Score on Test 2
80
60
40
20
20 40 60 80
100
120
Score on Test 1
(b) Write an equation for the line passing through the kinks of Nancy's
indifference curves.
(c) Write an equation for Nancy's budget line..
(d) Solve these two equations in two unknowns to determine the intersee-
tion of these lines. This happens at the point (21, 2)
(e) Given that she spends a total of 1,200 minutes studying, Nancy will
maximize her overall score by spending.
minutes studying for the
first examination and
mimites studying for the second examina-
tion.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.