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
Related questions
Question
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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education