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?
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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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*Calculate the
* 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?
Transcribed Image Text:Suppose that Skeeter consumes smoothies and DVDs.
The price of smoothies is $5 per unit and the price of
DVDs is $10 per unit. The table shows Skeeter's utility
from the consumption of each good; each row represents
a possible consumption bundle. Currently, Skeeter is
consuming 18 smoothies and 9 DVDs.
Quantity of
smoothies
10
12
14
16
18
20
22
24
26
Utility of
smoothies (utils)
50.00
68.30
81.00
89.00
93.70
96.40
97.74
98.20
98.56
Q of
DVDs
13
12
11
10
9
8
7
6
5
Utility of
DVDs (utils)
230.00
213.00
198.00
185.00
174.00
165.00
158.00
153.00
150.00
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