Consider two individuals,Wendy and Jenny,who discount delayed utilities with a weight of $ \frac{1}{4} $ and$ \frac{7}{8} $ ,respectively.Consuming one hamburger gives both Wendy and Jenny benefits worth 16 utils instantly,and it has delayed costs of 20 utils.
a)If the nearby hamburger shop is closed for a week,comment on whether both individuals will consume hamburgers after a week.
b)If a new shop is opened nearby and hamburgers are available for consumption today,comment on whether both individuals will consume hamburgers.

Question

Consider two individuals,Wendy and Jenny,who discount delayed utilities with a weight of $ \frac{1}{4} $  and$ \frac{7}{8} $ ,respectively.Consuming one hamburger gives both Wendy and Jenny benefits worth 16 utils instantly,and it has delayed costs of 20 utils.
a)If the nearby hamburger shop is closed for a week,comment on whether both individuals will consume hamburgers after a week.
b)If a new shop is opened nearby and hamburgers are available for consumption today,comment on whether both individuals will consume hamburgers.

Quizplus · Accepted Answer

The Answer of Consider two individuals,Wendy and Jenny,who discount delayed utilities with a weight of $ \frac{1}{4} $  and$ \frac{7}{8} $ ,respectively.Consuming one hamburger gives both Wendy and Jenny benefits worth 16 utils instantly,and it has delayed costs of 20 utils.
a)If the nearby hamburger shop is closed for a week,comment on whether both individuals will consume hamburgers after a week.
b)If a new shop is opened nearby and hamburgers are available for consumption today,comment on whether both individuals will consume hamburgers.

Consider Two Individuals,Wendy and Jenny,who Discount Delayed Utilities with a Weight