1. You have a budget of $125 per month that you can spend digital music or eating dinner. Each dinner costs $25 and each digital album costs $10. Use the chart below to answer the following questions. Albums Dinners Total No. Per Week No. Per Total Utility Week Utility 250 300 450 2 550 3 630 750 790 4 900 870 5 1025 1. What is the utility maximizing bundle? 2. Explain how the total utility will be affected if prices and income double? 3. 1. 2.

1. You have a budget of $125 per month that you can spend digital music or eating dinner. Each dinner costs $25 and each digital album costs $10. Use the chart below to answer the following questions. Albums Dinners Total No. Per Week No. Per Total Utility Week Utility 250 300 450 2 550 3 630 750 790 4 900 870 5 1025 1. What is the utility maximizing bundle? 2. Explain how the total utility will be affected if prices and income double? 3. 1. 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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