Livi consumes both sushi (s) and green tea (t). The following table shows her marginal utility schedule for these two goods (note, MUs = 14 when the quantity increases from 0 to 1, and correspondingly for the other values). The price of sushi is $2 a piece and the price of green tea is $1 a cup. Q MUs MUt MUs/Ps MUt/Pt 1 14 13 ___ ___ 2 12 11 ___ ___ 3 11 10 ___ ___ 4 10 8 ___ ___ 5 9 7 ___ ___ 6 8 6 ___ ___ 7 6 3 ___ ___ 8 4 2 ___ ___ Calculate the MU/P for each good, and fill in the blanks in the table. If her income is $10 (and these are the only two goods that Livi consumes), what combination of sushi and green tea will maximize her total utility?
Livi consumes both sushi (s) and green tea (t). The following table shows her
Q MUs MUt MUs/Ps MUt/Pt
1 14 13 ___ ___
2 12 11 ___ ___
3 11 10 ___ ___
4 10 8 ___ ___
5 9 7 ___ ___
6 8 6 ___ ___
7 6 3 ___ ___
8 4 2 ___ ___
Calculate the MU/P for each good, and fill in the blanks in the table.
If her income is $10 (and these are the only two goods that Livi consumes), what combination of sushi and green tea will maximize her total utility?
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