1) The following table shows William's total utility from consuming Pita Wraps and Bubble Tea. Quantity of Total Utility of Pita Wraps Total Utility of Bubble Teas Bubble Teas Quantity of Pita Wraps 1 2 3 4 5 6 7 8 9 10 11 12 72 156 222 276 318 354 378 396 405 411 414 414 1 2 3 4 5 6 7 8 9 10 11 12 60 126 180 230 276 318 354 372 381 387 390 390 price a) Suppose William has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the price of a glass of Bubble Tea is $3. What is William's optimal consumption bundle? Show all work! b) Now, suppose that the price of Bubble Tea increases to $6. Find William's new optimal consumption bundle. Show all work! c) List 2 points on William's demand curve for Bubble Tea. Sketch a graph of his demand curve for Bubble Tea.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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please help me solve for parts a, b, and c
Principles of Microeconomics
1) The following table shows William's total utility from consuming Pita Wraps and Bubble Tea.
Total Utility
Quantity of
Bubble Teas
Total Utility of
Bubble Teas
of Pita Wraps
72
156
222
276
318
354
378
396
405
411
414
414
Quantity of
Pita Wraps
1
2
3
4
5
6
7
8
9
10
11
12
1
2
3
4
5
6
7
8
9
10
11
12
Unit 2 Study Guide
60
126
180
230
276
318
354
372
381
387
390
390
the price
a) Suppose William has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the
price of a glass of Bubble Tea is $3. What is William's optimal consumption bundle? Show all work!
b) Now, suppose that the price of Bubble Tea increases to $6. Find William's new optimal consumption bundle.
Show all work!
c) List 2 points on William's demand curve for Bubble Tea. Sketch a graph of his demand curve for Bubble
Tea.
Transcribed Image Text:Principles of Microeconomics 1) The following table shows William's total utility from consuming Pita Wraps and Bubble Tea. Total Utility Quantity of Bubble Teas Total Utility of Bubble Teas of Pita Wraps 72 156 222 276 318 354 378 396 405 411 414 414 Quantity of Pita Wraps 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Unit 2 Study Guide 60 126 180 230 276 318 354 372 381 387 390 390 the price a) Suppose William has $30 to spend on Pita Wraps and Bubble Tea. The price of a Pita Wrap is $6 and the price of a glass of Bubble Tea is $3. What is William's optimal consumption bundle? Show all work! b) Now, suppose that the price of Bubble Tea increases to $6. Find William's new optimal consumption bundle. Show all work! c) List 2 points on William's demand curve for Bubble Tea. Sketch a graph of his demand curve for Bubble Tea.
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