Quanity Utility from Video Games Utility from Novels Marginal Utilty  Video Games Marginal Utilty  Novels Marginal Utilty  per Dollar Video Games Marginal Utilty  per Dollar Novels 0 0 0         1 30 30         2 40 38         3 48 44         4 54 46         5 58 47         The table shows the utility that Mark gets from the consumption of video games and novels. Mark has $100 per month to spend on video games and novels. Video game cost $20 each and novels cost$20 Calculate Mark’s utility  from  Video game Novels Calculate the MU per dollar of Mark’s  consumption  choices State the optimal number of video games  and the optimal number of novels  that  Mark will conume in a month. State how each of the following will affect the quantity of VG  and N consumed by Abina An  increase in the money she has to spend  by $20,  ceteris paribus An  increase in the price of ONE of the goods,  ceteris paribus

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Quanity

Utility from Video Games

Utility from

Novels

Marginal Utilty 

Video Games

Marginal Utilty 


Novels

Marginal Utilty  per Dollar

Video Games

Marginal Utilty  per Dollar

Novels

0

0

0

       

1

30

30

       

2

40

38

       

3

48

44

       

4

54

46

       

5

58

47

       



The table shows the utility that Mark gets from the consumption of video games and novels. Mark has $100 per month to spend on video games and novels. Video game cost $20 each and novels cost$20

  1. Calculate Mark’s utility  from 
  • Video game
  • Novels
  1. Calculate the MU per dollar of Mark’s  consumption  choices
  2. State the optimal number of video games  and the optimal number of novels  that  Mark will conume in a month.
  3. State how each of the following will affect the quantity of VG  and N consumed by Abina
  • An  increase in the money she has to spend  by $20,  ceteris paribus
  • An  increase in the price of ONE of the goods,  ceteris paribus
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