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In: Economics

Ryan likes to listen to music while studying at home. His brother Isaac, however, needs peace...

Ryan likes to listen to music while studying at home. His brother Isaac, however, needs peace and quiet in which to work. They both get an allowance and so have some money. To deal with arguments over whether music is played or not the parents decide that on Monday, Wednesday, Friday and Sunday peace and quiet must reign, but that on Tuesday, Thursday and Saturday it’s ok to play music. Note that the parents set this rule just to avoid quarrels between the two brothers; hence they do not need to stick to the rule as long as there is no quarrel. Note further that no headphones are allowed. Isaac values peace and quiet at $10 per day. Ryan values the ability to play music at $7 per day. If the boys are allowed to negotiate between themselves on which day(s) does music get played? Explain.

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