Becky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an office mate. She estimates her total utility for different quantities of coffee and cakes below. A cup of coffee is $1.00, and each piece of cake is $0.50. Becky has a total of $3 to spend. What is Becky's total utility if she buys 1 cup of coffee and 4 pieces of cake?**Utility from Consumption**| Cups of Coffee | Total Utility from Cups of Coffee | Pieces of Cake | Total Utility from Pieces of Cake ||----------------|----------------------------------|----------------|-----------------------------------|| 1 | 33 | 1 | 15 || 2 | 56 | 2 | 32 || 3 | 79 | 3 | 48 || 4 | – | 4 | 63 || 5 | – | 5 | 77 || 6 | – | 6 | 90 |**Total Utility of Different Consumption Bundles**| Consumption Bundle | Cups of Coffee | Pieces of Cake | Total Utility ||--------------------|----------------|----------------|---------------|| A | 3 | 0 | || B | 2 | 2 | || C | 1 | 4 | || D | 0 | 6 | |**Explanation of Graphs and Tables:**The first table lists the utility Becky derives from consuming varying quantities of coffee and cake. For example, one cup of coffee yields 33 units of utility, while one piece of cake yields 15. The utility increases with additional quantities.The second table shows the total utility for specific combinations of coffee and cake Becky might purchase. The missing total utility values can be calculated by adding the corresponding utility values from the first table for each combination.

Becky bought 1 cup of coffee and 4 pieces of cakes. Utility from 1 cup of coffee = 33 Utility from 4…

Becky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an office mate. She estimates her total utility for different quantities of coffee and cakes below. A cup of coffee is $1.00, and each piece of cake s $0.50. Becky has a total of $3 to spend. What is Becky's total utility if she buys 1 cup of coffee and 4 pieces of cake?

Becky needs to decide how many cups of coffee and pieces of cake she will buy for a meeting with an office mate. She estimates her total utility for different quantities of coffee and cakes below. A cup of coffee is $1.00, and each piece of cake s $0.50. Becky has a total of $3 to spend. What is Becky's total utility if she buys 1 cup of coffee and 4 pieces of cake?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

If the price of food is $20, the price of clothing is $80, and annual income is $60,000, determine the number of units of food and clothing the consumer purchases and the amount of utility the consumer derives from the optimal combination.
If marginal utility is declining but still positive, total utility is increasing. True or false and explain
Tom has a budget of $44 per week that he can spend on Ramen and/or steak burritos. Each burrito costs $10 and each bowl of Ramen is $6. Using the table below, what combination of these two goods will maximize Tom’s utility given his budget constraint?
If at a quantity consumed of 1 unit, total utility equals 25 and marginal utility equals 25, and at a quantity consumed of 2 units, total utility is unknown and marginal utility is 20, and at a quantity consumed of 3 units, total utility is 57 and marginal utility is unknown, what is marginal utility of the third unit?
The principle of diminishing marginal utility says that people don't enjoy consuming more of a good. True or False and Explain the choice
am. 113.
Refer to the table below. If the subscription price for a sports app is $2 per week, the subscription price of a game app is $1 per week, and a student has $9 per week to spend, what quantities will she purchase at a consumer optimum? Quantity of Sports Apps per week Marginal Utility (utils) Quantity of Game Apps per Week Marginal Utility (utils) 1 1,200 1 1,700 2 1,000 2 1,400 3 800 3 1,100 4 600 4 800 5 400 5 500 6 100 6 200
Who determines how much utility an individual will receive from consuming a good?
Jackie has a budget of $36 per month to spend on snacks. She can spend this budget on bags of potato chips (C) and Hershey chocolate bars (H). Potato chips cost $4 per bag, while Hershey bars cost $1 per bar. The utility that Jackie receives from consuming potato chips and Hershey bars is represented by the following utility function: U=3C2 H. Given that Jackie seeks to maximize her utility, find the number of potato chip bags and Hershey chocolate bars that Jackie will purchase each month.
The prices she's considering are shown in the table below. Calculate the utility for each of the prices in the table. What is the average of the calculated utilities?
Use the following information to answer questions 1 through 8: A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, or sodas, which cost $4 each. What is the largest number of burritos that the student could afford to purchase in one month? What is the largest number of sodas the student could afford to purchase in one month?
*Calculate the marginal utility per dollar of going from eight to nine DVDs. * To increase total utility without increasing spending, should Skeeter change the amount of consumption of either good? No, Skeeter is already consuming at the optimal consumption bundle. Yes, Skeeter should choose more smoothies and fewer DVDs. Yes, Skeeter should choose fewer smoothies and more DVDs. Yes, Skeeter should choose more smoothies and more DVDs. * What is the total utility at the optimal consumption bundle?