Problem
Bob likes to divide his recreational time between going to movies and listening to compact discs. He has 20 hours a week available for recreation; a movie takes two hours, and a CD takes one hour to listen to. Draw his "time-budget constraint" line. Bob also has a limited amount of income to spend on recreation. He has $60 a week to spend on recreational activities; a movie costs $10, and a CD costs $15. (He never likes to listen to the same CD twice.) Draw his budget constraint line. What is his opportunity set?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.