Frida loves to eat hot dogs and peanuts at the baseball park. She has budget of $21 and one bag of peanuts costs $3 while a hot dog costs $6. Using the table below, identify the total utility of hot dogs and peanuts when Frida maximizes her utility within her budget constraint. Hot dogs Total Utility Peanuts Total Utility 22 16 31 45 1 2 3 4 5 6 7 43 62 Select one: O 81 97 111 119 1 2 3 4 5 6 7 a. 88 total utility units b. 92 total utility units c. 74 total utility units d. 99 total utility units 58 70 81 92

Frida loves to eat hot dogs and peanuts at the baseball park. She has budget of $21 and one bag of peanuts costs $3 while a hot dog costs $6. Using the table below, identify the total utility of hot dogs and peanuts when Frida maximizes her utility within her budget constraint. Hot dogs Total Utility Peanuts Total Utility 22 16 31 45 1 2 3 4 5 6 7 43 62 Select one: O 81 97 111 119 1 2 3 4 5 6 7 a. 88 total utility units b. 92 total utility units c. 74 total utility units d. 99 total utility units 58 70 81 92

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 8P

See similar textbooks

Related questions

Q: Make a list of products you use at home (at least 6). List down the 5 things that you like and…

A: Following products are used at home 1. Gas Cylinders 2. Solar Water Heaters. 3. Toilet Paper 4.…

Q: Do you have any references or sources for this information

A: In an error correction model (ECM) expectations about future economic conditions can influence the…

Q: hey i was doing my homework and i couldnt figure out the last question

A: Average total cost is the per unit cost incurred in producing a commodity.

Q: Make flow chart of type of budget?

A: budget is a estimate expense and income for certain period of time

Q: Additional: Get solutions in details

A: We are not able to solve this.Reason:You haven't provided the question.Alternative solution:Please…

Q: Please answer full questions including fill in the blanks.

A: When an initial injection into a circular flow results in a larger ultimate rise in real national…

Q: At the new fishing quota, what is the quota rent per pound of Bluefin tuna? Suppose the average…

A: Economic rent refers to the price different between he demand and supply at the particular level of…

Q: Tutorial

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first…

Q: I did upload one question at a time but I kept getting a regetted and had no choice. Thank you for…

A: When making daily decisions, both people and small businesses can more accurately assess market…

Q: HOW TO DRAW A TABLE FORM

A: There are 4 possible ways in which the other player can act :- 1) always choose ‘C’ 2) He will…

Q: I need typing clear urjent no chatgpt use i will give 5 upvotes

A: Approach to solving the question: we have used vector approach to solve the question by doing cross…

Q: When I entered my answer in my online math assigment it said it was wrong

A: We use this formula to solve the above problem: A = P(1 + r)t where A is the amount that you get…

Q: You would like to open a hot dog stand at local game stadium. The fixed fee foir this stand is $500…

A: Break even point is the point where total revenue is equal to total cost . Or average cost is equal…

Q: What benefits are their in operating a business to consumer online business model for consumers and…

A: The objective of this question is to understand the benefits of operating a business to consumer…

Q: can you do the reference also

A: Inflationary pressures occur when the demand for goods and services outstrips the supply leading to…

Question

Only typed answer and please don't use chatgpt

Frida loves to eat hot dogs and peanuts at the baseball park. She has
a budget of $21 and one bag of peanuts costs $3 while a hot dog
costs $6. Using the table below, identify the total utility of hot dogs
and peanuts when Frida maximizes her utility within her budget
constraint.
Hot dogs Total Utility Peanuts Total Utility
1
22
43
2
3
4
5
LO
6
7
62
81
97
Select one:
O
111
119
1
2
3
4
5
6
7
a. 88 total utility units
b. 92 total utility units
c. 74 total utility units
d. 99 total utility units
16
31
45
58
70
81
92

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Determine marginal utility per dollar spent:

VIEW

Step 3: Determine utility maximization combination of peanuts and Hot dogs

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Take Jeremys total utility information in Exercise 6.1, and use the marginal utility approach to confirm the choice of phone minutes and round trips that maximize Jeremys utility.
Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either call her on the land-line phone for five cents per minute or he can drive to see her, at a roundâ€”trip cost of 2 in gasoline money. He has a total of 10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses a handy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values in Table 6.6, figure out the points 011 Jeremys consumption choice budget constraint (it may be helpful to do a sketch) and identify his utility-maximizing point.
Is it possible for total utility to increase while marginal utility diminishes? Explain.
If people do not have a complete mental picture of total utility for every level of consumption, how can they find their utility-maximizing consumption choice?
Would you expect total utility to rise or fall with additional consumption of a good? Why?
Would you expect marginal utility to rise or fall with additional consumption of a good? Why?
Praxilla, who lived in ancient Greece, derives utility from reading poems and from eating cucumbers. Praxilla gets 30 units of marginal utility from her first poem 27 units of marginal utility from her second poem 24 units of marginal utility from her third poem, and so on, with marginal utility declining by three units for each additional poem. Praxilla gets six units of marginal utility for each of her next three cucumbers consumed, five units of marginal utility for each of her next three cucumbers consumed, four units of marginal utility for each of the following three cucumbers consumed, and so on, with marginal utility declining by one for every three cucumber consumed. A poem costs three bronze coins hut a cucumber costs only one bronze coin. Praxilla has 18 bronze coins. Sketch Praxillas budget set between poems and cucumbers, placing poems on the vertical axis and cucumbers on the horizontal axis. Start off with the choice of zero poems and 18 cucumbers, and calculate the changes in marginal utility of moving along the budget line to the next choice of one poem and 15 cucumbers. Using this step-by-step process based on marginal utility, create a table and identify Praxillas utilityâ€”maximizing choice. Compare the marginal utility of the two goods and the relative prices at the optimal choice to see if the expected relationship holds. Hint: Label the table columns: 1) Choice, 2} Marginal Gain from More Poems, 3) Marginal Loss from Fewer Cucumbers, 4) Overall Gain or Loss, 5) Is the previous choice Optimal? Label the table rows: 1) 0 Poems and 18 Cucumbers, 2) 1 Poem and 15 cucumbers, 3) 2 Poems and 12 cucumbers, 4) 3 Poems and 9 Cucumbers, 5) 4 Poems and 6 cucumbers 6) 5 Poems and 3 Cucumbers, 7) 6 Poems and 0 Cucumbers.
What is the rule relating the ratio of marginal utility to prices of two goods at the optimal choice? Explain why, if this rule does not hold, the choice cannot be utility-maximizing
Who determines how much utility an individual will receive from consuming a good?