Q6. Ryan likes to listen to music while studying at home. His brother Isaac, however, needs...

Q6.

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.

Expert Solution

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.

Isaac values peace and quiet at $10 per day.

Ryan values the ability to play music at $7 per day.

It is given that only in three days music can be played, but from above we can see that -

Value of peace to Issac > value of music to Ryan

So if Issac don't want the music to be played, he can pay $7 to Ryan not to play music and still can have a $3 gain.

So on which days music may be played depends on Isaac's wish if he pays one day, than music will be played rest 2 days, if he pays 2 days, than music will be played one day and if he pays all three days than music can't be played on any day.

Since we don't know the amount of money Issac have, we can't be sure.

Rahul Sunny answered 1 year ago

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