Homework Help is Here – Start Your Trial Now!
Business
Economics
The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is S and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Part A Number of Pizzas Marginal Utility Number of Sodas Marginal Utility 10 1. 6. 2. 4. 1. 4.

The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is S and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Part A Number of Pizzas Marginal Utility Number of Sodas Marginal Utility 10 1. 6. 2. 4. 1. 4.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
100%

The table below shows the marginal utility from consuming mini pizzas and sodas.  If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch?

The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Part A Number of Pizzas Marginal Utility Number of Sodas Marginal Utility 1 10 1 6. 9. 1 4 1 0. 1. Calculate the marginal utility per dollar for sodas. Show your work. 2. List each sequential decision made to maximize utility. 3. How many pizzas and sodas maximize utility? Part B The owner of Primary Pizzas surveys customers and find that at the current price of $18/pizza, only 4% of customers want to buy a specialty pizza. They also discover that if the price were reduced to $14/pizza, 45% of customers would want to buy a pizza. How do you think the business should respond to this information? Why? 4. 5. 4, 3
Transcribed Image Text:The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Part A Number of Pizzas Marginal Utility Number of Sodas Marginal Utility 1 10 1 6. 9. 1 4 1 0. 1. Calculate the marginal utility per dollar for sodas. Show your work. 2. List each sequential decision made to maximize utility. 3. How many pizzas and sodas maximize utility? Part B The owner of Primary Pizzas surveys customers and find that at the current price of $18/pizza, only 4% of customers want to buy a specialty pizza. They also discover that if the price were reduced to $14/pizza, 45% of customers would want to buy a pizza. How do you think the business should respond to this information? Why? 4. 5. 4, 3
1, 2) 10 2. 4, 5. 2.011 X C Sign X b Ansv x L Calci X V 1.1 C X wher X A Tal X X zino A nttps://virtualvirginia.instructure.com/courses/11024/assignments/797869 K uea) O Economics & Personal Finance 6.8403060RR XK 6468535 APPLICATION: 2.01b Homework The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Part A Number of Pizzas Marginal Utility Number of Sodas Marginal Utility 1. 6. 2. 5. 4 1. 4. 0. 1. Calculate the marginal utility per dollar for sodas. Show your work. 2. List each sequential decision made to maximize utility. 3. How many pizzas and sodas maximize utility? Part B The owner of Primary Pizzas surveys customers and find that at the current price of $18/pizza, only 4% of customers want to buy a specialty pizza. They also discover that if the price were reduced to $14/pizza, 45% of customers would want to buy a pizza. How do you think the business should respond to this information? Why? How to complete and submit this assignment 1. Click the Submit Assignment button on this page. 2. Type your response(s) in the text box(es) provided. 3. When you've finished, click Submit. F4 F5 F7 F8 F10 PrtSc Del Home Scr Lk asned SysRq % 4 5€ Backsp: 6 8
Transcribed Image Text:1, 2) 10 2. 4, 5. 2.011 X C Sign X b Ansv x L Calci X V 1.1 C X wher X A Tal X X zino A nttps://virtualvirginia.instructure.com/courses/11024/assignments/797869 K uea) O Economics & Personal Finance 6.8403060RR XK 6468535 APPLICATION: 2.01b Homework The table below shows the marginal utility from consuming mini pizzas and sodas. If pizzas and soda are the only goods and the price of a mini pizza is $1 and the price of a soda is $.50, how many of each will maximize utility if you have $4 for lunch? Part A Number of Pizzas Marginal Utility Number of Sodas Marginal Utility 1. 6. 2. 5. 4 1. 4. 0. 1. Calculate the marginal utility per dollar for sodas. Show your work. 2. List each sequential decision made to maximize utility. 3. How many pizzas and sodas maximize utility? Part B The owner of Primary Pizzas surveys customers and find that at the current price of $18/pizza, only 4% of customers want to buy a specialty pizza. They also discover that if the price were reduced to $14/pizza, 45% of customers would want to buy a pizza. How do you think the business should respond to this information? Why? How to complete and submit this assignment 1. Click the Submit Assignment button on this page. 2. Type your response(s) in the text box(es) provided. 3. When you've finished, click Submit. F4 F5 F7 F8 F10 PrtSc Del Home Scr Lk asned SysRq % 4 5€ Backsp: 6 8
Expert Solution
Step 1

We have giver marginal utility table of Pizza and soda,

The price of mini pizza =1 and the price of soda is $0.5

Total income for lunch =$4 

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Utility Maximization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS