How much would she have needed to give him in cash to make him just as well off as with the gift certificate?

). His preferences over these two goods are giv Show more Andrew likes two goods: movies ( M ) and wine ( W). His preferences over these two goods are given by The price of a movie is $10 and the price of a bottle of wine is $15. Knowing that he likes movies Andrews girlfriend gives him a gift certificate of $150 redeemable only at the local movie theater. Although Andrew is happy to get this gift his girlfriend did not realize that she could have made him exactly as happy by spending far less than she did. How much would she have needed to give him in cash to make him just as well off as with the gift certificate? Andrews girlfriend likes Christmas ornaments (C). She also values time (T) Andrew spends searching for a perfect ornament gift for her. Her preferences over these two goods are given by Andrew decides to give his girlfriend a perfect gift of $150. Please explain why his girlfriend may not be very excited about that gift. If Christmas presents cost $10 and Andrews time is worth $25 per hour (since hes not working when searching for presents the cost of his time = his wage) how many Christmas presents Andrew should buy and how much time should he spend in order to make his girlfriend as happy as possible with the same $150 budget? Show less

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