In this chapter, we focused a lot on budget constraints, but time is an additional constraint that consumers face. Jackson has $40 per week to spend on leisure activities.
He likes to bowl and to play racquetball. Bowling costs $4 per game, and a day pass to the racquet club costs $8. Jackson only has 7 hours of leisure time per week, and both bowling and racquetball each take 1 hour per game.
Construct Jackson's budget constraint and his time constraint on the same diagram. Consider each of the consumption bundles following that could possibly be Jackson's utility-maximizing bundle. How does each of these bundles relate to Jackson's two constraints?