Arnie has $20 per week to spend on any combination of pineapples and green tea. The price of a pineapple is $4 and the price of a bottle of green tea is $2. The table below shows Arnie's utility values. Use the table to answer the questions that follow.     Quantity of Pineapples  Total Utility  Marginal Utility  Marginal Utility per Dollar  Quantity of Green Tea  Total Utility  Marginal Utility  Marginal Utility per Dollar  1  32           1

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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  1. Arnie has $20 per week to spend on any combination of pineapples and green tea. The price of a pineapple is $4 and the price of a bottle of green tea is $2. The table below shows Arnie's utility values. Use the table to answer the questions that follow. 

  

Quantity of Pineapples 

Total Utility 

Marginal Utility 

Marginal Utility per Dollar 

Quantity of Green Tea 

Total Utility 

Marginal Utility 

Marginal Utility per Dollar 

32 

  

  

  

28 

  

  

52 

  

  

  

46 

  

  

64 

  

  

  

54 

  

  

68 

  

  

  

60 

  

  

70 

  

  

  

64 

  

  

71 

  

  

  

66 

  

  

71 

  

  

  

67 

  

  

  

  1. Complete the table by filling in the blank spaces. 

      2. Suppose Arnie purchases 4 pineapples and 2 bottles of green tea. Is he consuming the optimal consumption bundle? If so, explain why. If not, what combination should he buy and why? 

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