6. The table below presents Kent's marginal utility per dollar for books and pizzas. Books cost $16 each and pizzas cost $8 each. Books MU/P Pizzas MU/P 1 30 25 2 26 24.5 3 24.5 20 4 20 16 17.5 11 6. 10 8. 7 5.5 1234 S6r
6. The table below presents Kent's marginal utility per dollar for books and pizzas. Books cost $16 each and pizzas cost $8 each. Books MU/P Pizzas MU/P 1 30 25 2 26 24.5 3 24.5 20 4 20 16 17.5 11 6. 10 8. 7 5.5 1234 S6r
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:6. The table below presents Kent's marginal utility per dollar for books and pizzas. Books cost $16 each
and pizzas cost $8 each.
Books
MU/P
Pizzas
MU/P
1
30
1
25
26
24.5
3
24.5
20
4
20
4
16
17.5
11
6.
10
8
7
5.5
7
How many books and pizzas will Kent purchase if he has $88 to spend?
a.
b. How much utility will Kent receive from his purchases in a?
c. The price of books rises to $20 a book. How do your answers to a and b change?
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