Please help me quickly solve all they related Q7. Jamal has Budget of $50 and he needs two goods (Milk and Movie) to live. The price ofa bottle of Milk is $5 and a Movie ticket is $10. The following table shows the Jamal'sUtilities from these two goods.Bottles of MilkMovie TicketsQuantity TotalMarginalMU/$QuantityTotalMarginal MU/$UtilityUtilityUtilityUtility195117021802320345625534503204560375420a. Fill the blanked columns?b. Write down the budget equation of Jamal.c. Write down all the consumption possibilities for Jamal.56650720ABВCDEFBottles of MilkMovie TicketsGHd. Explain why the marginal utilities of Jamal is decreasing if he consumes more and moreof a good?e. Explain the rule for utility maximization and identify the Utility maximization level ofJamal?

Utility is the measure that represents the satisfaction level of a consumer. It is influenced and…

Q7. Jamal has Budget of $50 and he needs two goods (Milk and Movie) to live. The price of a bottle of Milk is $5 and a Movie ticket is $10. The following table shows the Jamal's Utilities from these two goods. Bottles of Milk Movie Tickets Quantity Total Marginal MU/$ Quantity Total Marginal MU/$ Utility Utility Utility Utility 1 95 1 170 2 180 2 320 3 255 3 450 4 320 4 560 5 375 5 650 6 420 6 720 a. Fill the blanked columns? b. Write down the budget equation of Jamal. c. Write down all the consumption possibilities for Jamal. ABCD E Bottles of Milk Movie Tickets F G H d. Explain why the marginal utilities of Jamal is decreasing if he consumes more and more of a good? e. Explain the rule for utility maximization and identify the Utility maximization level of Jamal?

Q7. Jamal has Budget of $50 and he needs two goods (Milk and Movie) to live. The price of a bottle of Milk is $5 and a Movie ticket is $10. The following table shows the Jamal's Utilities from these two goods. Bottles of Milk Movie Tickets Quantity Total Marginal MU/$ Quantity Total Marginal MU/$ Utility Utility Utility Utility 1 95 1 170 2 180 2 320 3 255 3 450 4 320 4 560 5 375 5 650 6 420 6 720 a. Fill the blanked columns? b. Write down the budget equation of Jamal. c. Write down all the consumption possibilities for Jamal. ABCD E Bottles of Milk Movie Tickets F G H d. Explain why the marginal utilities of Jamal is decreasing if he consumes more and more of a good? e. Explain the rule for utility maximization and identify the Utility maximization level of Jamal?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please help me quickly solve all they related

Q7. Jamal has Budget of $50 and he needs two goods (Milk and Movie) to live. The price of
a bottle of Milk is $5 and a Movie ticket is $10. The following table shows the Jamal's
Utilities from these two goods.
Bottles of Milk
Movie Tickets
Quantity Total
Marginal
MU/$
Quantity
Total
Marginal MU/$
Utility
Utility
Utility
Utility
1
95
1
170
2
180
2
320
3456
255
3
450
320
4
560
375
420
a. Fill the blanked columns?
b. Write down the budget equation of Jamal.
c. Write down all the consumption possibilities for Jamal.
56
650
720
AB
В
C
D
E
F
Bottles of Milk
Movie Tickets
G
H
d. Explain why the marginal utilities of Jamal is decreasing if he consumes more and more
of a good?
e. Explain the rule for utility maximization and identify the Utility maximization level of
Jamal?

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Step 1: Define utility.

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Step 2: Calculate marginal utility and marginal utility from the last dollar.

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Step 3: Derive budget equation fo Jamal.

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Step 4: Calculate consumption possibilities for Jamal.

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