Price of candy New price of Price of ice cream cones = 5.00 2.50 candy = $ 1.25 Quantity of Ice Cream Total Utility Marginal Utility Marginal Utility per Quantity of Candy Marginal Utility Marginal Utility per Marginal Utility per Total Utility Cones Dollar Dollar Dollar 1 25 25 1 15 15 12 2 45 20 4 2 25 10 4 3 60 15 3 3 33 8 3.2 6.4 4 69 1.8 4 38 4 72 40 0.8 1.6
Price of candy New price of Price of ice cream cones = 5.00 2.50 candy = $ 1.25 Quantity of Ice Cream Total Utility Marginal Utility Marginal Utility per Quantity of Candy Marginal Utility Marginal Utility per Marginal Utility per Total Utility Cones Dollar Dollar Dollar 1 25 25 1 15 15 12 2 45 20 4 2 25 10 4 3 60 15 3 3 33 8 3.2 6.4 4 69 1.8 4 38 4 72 40 0.8 1.6
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Need help with drawing the
Transcribed Image Text:Price of candy
New price of
Price of ice cream cones =
2$
5.00
$
2.50
candy =
$ 1.25
|Quantity of
Ice Cream Total Utility
Marginal
Utility
Marginal
Utility per
|Quantity of
Candy
Marginal
Utility
Marginal
Utility per
Marginal
Utility per
Total Utility
Cones
Dollar
Dollar
Dollar
1
25
25
1
15
15
12
2
45
20
4
25
10
4
8
60
15
3
33
8
3.2
6.4
4
69
9
1.8
4
38
5
2
4
72
0.6
40
0.8
1.6
Expert Solution
Step 1
When price of ice cream cone is $5.00
Price of candy is $2.5
Then the optimum consumption will occur at point where quantity demanded is:-
2 cones of ice-cream and 2 units of candy.
When price of candy decreases from $2.5 to $1.25, quantity of candy demanded will increase from 2 units to 4 units.
Step by step
Solved in 2 steps with 1 images
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.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education