Suppose that Joe consumes cupcakes and pizzas. Theprice of cupcakes is $5 per unit and the price of pizzas is$10 per unit. The table shows Joe's utility from theconsumption of each good; each row represents apossible consumption bundle. Currently, Joe isconsuming 18 cupcakes and 9 pizzas.AQuantity ofcupcakes101214161820222426Utility ofcupcakes (utils)50.0068.3081.0089.0093.7096.4097.7498.2098.56Q ofpizzas5131211108769Utility ofpizzas (utils)263.00258.00250.00240.00227.00212.00195.00175.00150.00Show Transcribed Textna. Calculate the marginal utility per dollar of going from eight to nine pizzas.b. To increase total utility without increasing spending, should Joe change the amount of consumption of either good?OYes, Joe should choose more cupcakes and fewer pizzas.O Yes, Joe should choose more cupcakes and more pizzas.O No, Joe is already consuming at the optimal consumption bundle.O Yes, Joe should choose fewer cupcakes and more pizzas.e. What is the total utility at the optimal consumption bundle?utils/$utils

The utility function for a typical household assesses the contentment or welfare received from…

Suppose that Joe consumes cupcakes and pizzas. The price of cupcakes is $5 per unit and the price of pizzas is $10 per unit. The table shows Joe's utility from the consumption of each good; each row represents a possible consumption bundle. Currently, Joe is consuming 18 cupcakes and 9 pizzas. Macmillan Learning Quantity of cupcakes 10 12 14 16 18 20 22 24 26 Utility of cupcakes (utils) 50.00 68.30 81.00 89.00 93.70 96.40 97.74 98.20 98.56 Q of pizzas 5 13 12 11 10 8 7 6 9 Utility of pizzas (utils) 263.00 258.00 250.00 240.00 227.00 212.00 195.00 175.00 150.00

Suppose that Joe consumes cupcakes and pizzas. The price of cupcakes is $5 per unit and the price of pizzas is $10 per unit. The table shows Joe's utility from the consumption of each good; each row represents a possible consumption bundle. Currently, Joe is consuming 18 cupcakes and 9 pizzas. Macmillan Learning Quantity of cupcakes 10 12 14 16 18 20 22 24 26 Utility of cupcakes (utils) 50.00 68.30 81.00 89.00 93.70 96.40 97.74 98.20 98.56 Q of pizzas 5 13 12 11 10 8 7 6 9 Utility of pizzas (utils) 263.00 258.00 250.00 240.00 227.00 212.00 195.00 175.00 150.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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