1. You have a budget of $125 per month that you can spend digital music or eatingdinner. Each dinner costs $25 and each digital album costs $10. Use the chart belowto answer the following questions.AlbumsNo. PerWeek12345TotalUtility250450630790870DinnersNo. Per TotalWeekUtility123|4530055075090010251. What is the utility maximizing bundle?2. Explain how the total utility will be affected if prices and income double?

The utility of the digital album and dinner is given below:AlbumsDinnerNo per weekTUNo per…

Answered: 1. You have a budget of $125 per month…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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