5. Maximizing Utility when Purchasing Two Goods A consumer has an income of $24. The only two goods the consumer is interested in purchasing are t-shirts and tacos. The marginal-utility schedules for these two goods are shown in the table below. If the price of t-shirts is $8 and the price of tacos is $2, how much of each good should the consumer purchase? Hint: You must calculate the MU/P as the first step in the process. Good A Good B Quantity MU MU/P MU MU/P 1 48 24 2 32 16 3 24 12 4 16 8 5 8 6 6 4 4 1 t-shirt and 3 tacos 2 t-shirts and 4 tacos 3 t-shirts and 5 tacos 4 t-shirts and 6 tacos
5. Maximizing Utility when Purchasing Two Goods A consumer has an income of $24. The only two goods the consumer is interested in purchasing are t-shirts and tacos. The marginal-utility schedules for these two goods are shown in the table below. If the price of t-shirts is $8 and the price of tacos is $2, how much of each good should the consumer purchase? Hint: You must calculate the MU/P as the first step in the process. Good A Good B Quantity MU MU/P MU MU/P 1 48 24 2 32 16 3 24 12 4 16 8 5 8 6 6 4 4 1 t-shirt and 3 tacos 2 t-shirts and 4 tacos 3 t-shirts and 5 tacos 4 t-shirts and 6 tacos
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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5. Maximizing Utility when Purchasing Two Goods
A consumer has an income of $24. The only two goods the consumer is interested in purchasing are t-shirts and tacos. The marginal-utility schedules for these two goods are shown in the table below. If the price of t-shirts is $8 and the price of tacos is $2, how much of each good should the consumer purchase? Hint: You must calculate the MU/P as the first step in the process.
Good A Good B
Quantity MU MU/P MU MU/P
1 48 24
2 32 16
3 24 12
4 16 8
5 8 6
6 4 4
1 t-shirt and 3 tacos
2 t-shirts and 4 tacos
3 t-shirts and 5 tacos
4 t-shirts and 6 tacos
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