Gabriella obtains utility from consuming granola bars and cappuccino. The following table shows the total utility (TU) she obtains from consuming different amounts of the two goods. The price of a granola bar is $3 and the price of a cup of cappuccino is $2. She has allocated $9 to spend on granola bars and cappuccino. 1. Complete the table by calculating the marginal utility (MU) and the MU per dollar spent on each granola bar and cup of cappuccino. 2. What is Gabriella’s optimal consumption bundle of granola bars and cups of cappuccino?
Gabriella obtains utility from consuming granola bars and cappuccino. The following table shows the total utility (TU) she obtains from consuming different amounts of the two goods. The price of a granola bar is $3 and the price of a cup of cappuccino is $2. She has allocated $9 to spend on granola bars and cappuccino. 1. Complete the table by calculating the marginal utility (MU) and the MU per dollar spent on each granola bar and cup of cappuccino. 2. What is Gabriella’s optimal consumption bundle of granola bars and cups of cappuccino?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Gabriella obtains utility from consuming granola bars and cappuccino. The following table shows the total utility (TU) she obtains from consuming different amounts of the two goods. The
1. Complete the table by calculating the marginal utility (MU) and the MU per dollar spent on each granola bar and cup of cappuccino.
2. What is Gabriella’s optimal consumption bundle of granola bars and cups of cappuccino?

Transcribed Image Text:TABLE 19
Number
of
granola
bars
O
1
2
3
4
5
TU from
consuming
granola
bars
O
18
33
45
54
60
MU from
the last
granola
bar
consumed
MU per
dollar
spent on
granola
bars
(MU
granola
bars
P
granola
bar
Number of
cups of
cappuccino
O.
1
2
3
4
LO
5
TU from
drinking
cappuccino
O
20
36
48
56
60
MU from
the last
cup of
cappuccino
1712
MU per dollar
spent on
cappuccino
(MU cappuccino/
cappuccino
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