The following table shows Madison's utility from consuming popcorn and Coke. Suppose that Madison has income of $30.00, the price of popcorn is $6.00, and the price of Coke is $9.00. If Madison wants to maximize her utility, how much popcorn and Coke should she buy? Madison should buy boxes of popcorn and Quantity 2 3 Popcorn Marginal Utility 96 72 48 24 12 Coke Marginal Utility 144 108 cans of Coke. (Enter your responses as integers.) 72 36 18 9

The following table shows Madison's utility from consuming popcorn and Coke. Suppose that Madison has income of $30.00, the price of popcorn is $6.00, and the price of Coke is $9.00. If Madison wants to maximize her utility, how much popcorn and Coke should she buy? Madison should buy boxes of popcorn and Quantity 2 3 Popcorn Marginal Utility 96 72 48 24 12 Coke Marginal Utility 144 108 cans of Coke. (Enter your responses as integers.) 72 36 18 9

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Only typed answer
2.5 Ms. Caffeine enjoys coffee (C) and tea (T) accord- ing to the function U(C,T) = 3C+4T. a. What does her utility function say about her MRS of coffee for tea? What do her indiffer- ence curves look like? b. If coffee and tea cost $3 each and Ms. Caffeine has $12 to spend on these products, how much coffee and tea should she buy to maximize her utility? c. Draw the graph of her indifference curve map and her budget constraint, and show that the utility-maximizing point occurs only on the T-axis where no coffee is bought. d. Would this person buy any coffee if she had more money to spend? e. How would her consumption change if the price of coffee fell to $2?
CS 11 Economics
36
Only typed Answer
am. 113.
The following table describes the utility that Greta gets from consuming Shiner Bock. Her marginal utility is maximized ___.
12. Five consumers have the following marginal utility of apples and pears: Marginal Utility Marginal Utility of Apples of Pears Claire 6 12 Phil 6 6 Haley 6 3 Alex 3 6 Luke 3 12 The price of an apple is $1, and the price of a pear is $2. Which, if any, of these consumers are optimizing their choices of fruit? For those who are not, how should they change their spending?
Suppose an individual is currently spending all of their income on a bundle of books and pizza, but they are not sure whether the bundle maximizes their utility. Assume the individual has a strictly diminishing marginal rate of substitution over these two goods. At their current bundle of books and pizza, the individual's marginal utility from consuming books is 6 utils and their marginal utility from consuming pizza is 3 utils. If the current price of a book is $12 and the price of a pizza is $7, which of the following statements must be true: A. The individual can increase their utility by consuming more books and less pizza B. The individual is maximizing their utility C. The individual can increase their utility by consuming more pizza and fewer books
Please answer fast
The table shows Jill’s utility schedule for pancakes and coffee # pancakes total utility from pancakes MU from last pancake # cups of coffee total utility from coffee MU from last cup of coffee 1 10 10 1 12 12 2 18 2 22 3 24 3 30 4 28 4 36 5 30 5 40 6 30 6 42 Suppose that the price of pancakes is $2/pancake, and the price of coffee is $2/cup. She has only $10 to spend on these two goods. What is her utility-maximizing bundle of pancakes and coffee? The table gives a utility schedule for Anton. Number of Doughnuts Total Utility 1 12 2 33 3 43 4 50 5 56 6 60 What important property does Anton's utility exhibit? Group of answer choices additive utility ignoring sunk cost rational optimization diminishing marginal utility
Ethan has $17 per week in his food budget. He splits his choices between pizzas and hot dogs. Each slice of pizza costs $2 while each hot dog costs $3. The total utility (TU) from each of these choices is set out in the table below. Marginal utility for pizza and hotdog (MU/$) for TU MU MU pizza hotdog Units TU pizza pizza hotdog 1 10 5 2 18 9 3 20 12 4 22 15 5 23 17 1. Complete the table calculating marginal utility (MU) and marginal utility per dollar (MU/$) for both choices. Remember to show your work for at least one unit! 2. What is Ethan's utility maximizing choice? Justify your answer by showing your work! HINT: use the budget constraint equation to show the optimal choice! (MU/$) for hotdog