1. Chucky enjoys going to the arcade to play videogames. His favorite two games are Child’s Play (C) and Bride of Chucky (B). The cost of playing one level of either game is 2 dollars, and Chucky has 20 dollars to spend on playing games. His preferences can be represented by the following utility function:
U (C,B) = C^(2)B
a) How many levels of each game will he play? Show your results in a graph.
b) Now suppose that playing the videogames is free, but Chucky only has 12 hours to play videogames (he spends the rest of his day terrorizing Andy). A level of Child’s Play takes 4 hours and a level of Bride of Chucky takes 2 hours. How should he reassign the number of levels he plays of each game in order to maximize his utility?
c) Which does Chucky prefer, being subject to the money constraint or being subject to the time constraint?