a) For the utility function above, if the price of the good is $4, what is the Marginal Utility per Dollar for the fourth unit consL 18 utils. b) For the utility function above, if the price of the good is $2, what is the Marginal Utility per Dollar for the second unit cons 18 utils. c) Would a rational consumer consume the eighth unit if it was free? No

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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9 UTILITY CALCULATIONS
TOTAL AND MARGINAL UTILITY
Quantity
Consumed
Marginal
Utility
Total Utility
Total
Utility
70
60
50
22
40
22
30
18
20
40
10
14
3
54
2
4.
8.
Quantity Consumed
10
Marginal Utility
4
64
20
6.
10
70
1
2
3
4
6.
8.
-10
-20
Quantity Consumed
Quantity Consumed
2.
3.
6
8.
1.
3.
Transcribed Image Text:Reset 9 UTILITY CALCULATIONS TOTAL AND MARGINAL UTILITY Quantity Consumed Marginal Utility Total Utility Total Utility 70 60 50 22 40 22 30 18 20 40 10 14 3 54 2 4. 8. Quantity Consumed 10 Marginal Utility 4 64 20 6. 10 70 1 2 3 4 6. 8. -10 -20 Quantity Consumed Quantity Consumed 2. 3. 6 8. 1. 3.
Quantity Consumed
10
Marginal Utility
4
64
20
10
2 3
4
5
6.
-10
-20
Quantity Consumed
Quantity Consumed
1
5
6
7
8
Instructions: Move the slider at the bottom of the diagram to change the quantity consumed for all the available quantities on
utility and marginal utility graphs.
a) For the utility function above, if the price of the good is $4, what is the Marginal Utility per Dollar for the fourth unit consume
18 utils.
b) For the utility function above, if the price of the good is $2, what is the Marginal Utility per Dollar for the second unit consum
18 utils.
c) Would a rational consumer consume the eighth unit if it was free? No
Transcribed Image Text:Quantity Consumed 10 Marginal Utility 4 64 20 10 2 3 4 5 6. -10 -20 Quantity Consumed Quantity Consumed 1 5 6 7 8 Instructions: Move the slider at the bottom of the diagram to change the quantity consumed for all the available quantities on utility and marginal utility graphs. a) For the utility function above, if the price of the good is $4, what is the Marginal Utility per Dollar for the fourth unit consume 18 utils. b) For the utility function above, if the price of the good is $2, what is the Marginal Utility per Dollar for the second unit consum 18 utils. c) Would a rational consumer consume the eighth unit if it was free? No
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