Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

Exercise 10

Suppose that an individual obtains the same utility from a given level of consumption regardless of whether it is consumed now or next period. Suppose also that the marginal utility of consumption is diminishing. Why would you expect this person to be ''impatient,'' that is, always choosingC 0 to be greater than C 1 ? (Hint: What is the relative ''price'' of C 1 in terms of C 0 ?)