SAPLINGPLUS ACCESS MICRO 1 TERM
SAPLINGPLUS ACCESS MICRO 1 TERM
4th Edition
ISBN: 9781319319038
Author: KRUGMAN
Publisher: MAC LTD
Question
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Chapter 10, Problem 7P
To determine

To answer:

The following question based on the accompanying table given

Concept Introduction:

Marginal utility per dollar: This is calculated by dividing marginal utility of a good by the price of the good

Marginal utility: This is the additional benefit or satisfaction derived from the consumption of an additional unit of a commodity or service.

Utility: This is the benefit or satisfaction derived from the consumption of a good or service

Expert Solution & Answer
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Explanation of Solution

  1. The bundles available for Damien if he spends all of his income either going for gym or watching a movie
  2. SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  1 Gym visits, SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  2 movies

    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  3 Gym visits, SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  4 movies

    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  5 Gym visits, SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  6 movies

    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  7 Gym visits, SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  8 movies

    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  9 Gym visits, SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  10 movies

    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  11 Gym visits, SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  12 movies

    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  13 Gym visits, SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  14 movies

    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  15 Gym visits, SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  16 movies

    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  17

    The above graph shows the budget curve of Damien with his income spent on either going for movies or going to the gym.

    Quantity of Gym visits Utility from gym visits Marginal utilities from gym visits Marginal utilities per hour Quantity of movies Utility from movies Marginal utility from movies Marginal utilities per hour
    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  18 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  19 - - SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  20 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  21 - -
    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  22 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  23 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  24 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  25 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  26 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  27 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  28 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  29
    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  30 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  31 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  32 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  33 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  34 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  35 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  36 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  37
    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  38 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  39 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  40 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  41 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  42 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  43 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  44 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  45
    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  46 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  47 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  48 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  49 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  50 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  51 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  52 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  53
    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  54 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  55 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  56 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  57 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  58 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  59 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  60 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  61
    SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  62 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  63 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  64 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  65 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  66 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  67 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  68 SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  69
  3. The above table shows the marginal utility of each gym visit and each movie show and it also shows the marginal utility per hour spent at the gym and the marginal utility per hour spent at watching movies.
  4. SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  70

  5. The above diagram shows the marginal utility per hour spent on gym visits and the marginal utilities per hour spent on movies, the intersection of both curves is shown by the point ‘E’ and this point is considered as the optimal point which represents the optimal choice for Damien. The optimal bundle for Damien is the bundle containing SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  71 gym visits and SAPLINGPLUS ACCESS MICRO 1 TERM, Chapter 10, Problem 7P , additional homework tip  72 movies where the marginal utility per hour spent on gym equals the marginal utility of per hour spent on watching movies.

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