An individual's preferences for daily free time (t) and consumption (c) are represented by the function u(t, c) = 4√t + c. The 'marginal rate of substitution' describes their willingness to trade one good for the other. Suppose this individual currently has 16 hours of free time. How would their willingness to give up an hour of free time for more consumption change if their consumption level (c) were to increase, while their free time remains at 16 hours?
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CORE Econ
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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