Please find the utility maximizing level of consumption bundle if the income of the consumer is 120 TL. Show the utility maximizing level of consumption for each product on the table. Explain your answer by stating the utility maximizing rule. Number of Cinema TicketsTotal UtilityMarginal UtilityMU/P forPrice of a Cinema TicketCinema Tickets14014020140/20-724010020100/20 5330902090/20-4.54400702070/20-3.5440402040/20-2470302030/20-1.5Number of Concert TicketsTotal UtilityMarginal UtilityMU/P forPrice of a Concert TicketConcert Tickets1.24024040240/40-6200/40-54402004060016040160/40-44.72012040120/40-380/40=280080406.850504050/40-1.25123 t56

The utility maximization problem is to find a consumption bundle that maximizes a given utility…

Answered: Please find the utility maximizing…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please find the utility maximizing level of consumption bundle if the income of the consumer is 120 TL. Show the utility maximizing level of consumption for each product on the table. Explain your answer by stating the utility maximizing rule.

Number of Cinema Tickets
Total Utility
Marginal Utility
MU/P for
Price of a Cinema Ticket
Cinema Tickets
140
140
20
140/20-7
240
100
20
100/20 5
330
90
20
90/20-4.5
4
400
70
20
70/20-3.5
440
40
20
40/20-2
470
30
20
30/20-1.5
Number of Concert Tickets
Total Utility
Marginal Utility
MU/P for
Price of a Concert Ticket
Concert Tickets
1.
240
240
40
240/40-6
200/40-5
440
200
40
600
160
40
160/40-4
4.
720
120
40
120/40-3
80/40=2
800
80
40
6.
850
50
40
50/40-1.25
123 t56

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