3) Marc has an income of $20 per month. Root beer costs $5 per can, and CDs cost $10 each. Find Marc's utility maximizing consumption bundle. beer (bottles per month) 0 2 1 2 ·10 3 4 CDs (number per month) a. What is Marc's utility maximizing consumption bundle? b. At his utility maximizing point, what is his OC of Root Beer in terms of CDs? wc. If the price of a CD falls to $5, and the price of Root Beer remains the same, find Marc's new utility maximizing bundle. d. What are 2 points on Marc's demand curve for CDs? Sketch a graph of Marc's demand for CDs.

3) Marc has an income of $20 per month. Root beer costs $5 per can, and CDs cost $10 each. Find Marc's utility maximizing consumption bundle. beer (bottles per month) 0 2 1 2 ·10 3 4 CDs (number per month) a. What is Marc's utility maximizing consumption bundle? b. At his utility maximizing point, what is his OC of Root Beer in terms of CDs? wc. If the price of a CD falls to $5, and the price of Root Beer remains the same, find Marc's new utility maximizing bundle. d. What are 2 points on Marc's demand curve for CDs? Sketch a graph of Marc's demand for CDs.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 10RQ: What is the rule relating the ratio of marginal utility to prices of two goods at the optimal...

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