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Quantity of Subscriptions to Economics Statistics Apps per Year 1 2 3 4 5 6 Total Utility (utils) 30 50 60 8 77 75 68 72 Quantity of Subscriptions to Office Productivity Apps per Year 1 2 3 4 5 6 Total Utility (utils) 600 1,100 1,500 1,800 2,000 2,100

Quantity of Subscriptions to Economics Statistics Apps per Year 1 2 3 4 5 6 Total Utility (utils) 30 50 60 8 77 75 68 72 Quantity of Subscriptions to Office Productivity Apps per Year 1 2 3 4 5 6 Total Utility (utils) 600 1,100 1,500 1,800 2,000 2,100

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Quantity of Subscriptions to Economics Statistics Apps per Year 1 2 3 4 5 6 Total Utility (utils) 30 50 60 68 72 75 Quantity of Subscriptions to Office Productivity Apps per Year 1 2 3 4 5 6 Total Utility (utils) 600 1,100 1,500 1,800 2,000 2,100 Refer to the above table and assume that each year this consumer buys only annual subscriptions to economics statistics apps and subscriptions to office productivity apps. The price of a subscription to each type of economics statistics app is $4, and the subscription to each office productivity app is $40 per year. If the consumer's available income is $252 per year, the consumer will purchase 3 economics statistics app(s) and 6 office productivity app(s). If the consumer's available income falls to $208, what will be the new combination of economics statistics apps and office productivity apps? economics statistics app(s): 2 and office productivity app(s): 5
Transcribed Image Text:Quantity of Subscriptions to Economics Statistics Apps per Year 1 2 3 4 5 6 Total Utility (utils) 30 50 60 68 72 75 Quantity of Subscriptions to Office Productivity Apps per Year 1 2 3 4 5 6 Total Utility (utils) 600 1,100 1,500 1,800 2,000 2,100 Refer to the above table and assume that each year this consumer buys only annual subscriptions to economics statistics apps and subscriptions to office productivity apps. The price of a subscription to each type of economics statistics app is $4, and the subscription to each office productivity app is $40 per year. If the consumer's available income is $252 per year, the consumer will purchase 3 economics statistics app(s) and 6 office productivity app(s). If the consumer's available income falls to $208, what will be the new combination of economics statistics apps and office productivity apps? economics statistics app(s): 2 and office productivity app(s): 5
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Utility will be maximized at a point where the marginal utility per dollar spent will be the same for each of the apps

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