Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 6, Problem 2.1P
To determine
The
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Question 2
The table below contains information about the total utility Jerry gains from coffee and pastries he buys from the coffee shop
No of Coffee & Pastries
Total utility from Coffee
Total utility from Pastries
1
1.50
10
2
2.70
13
3
3.60
15
4
3.60
16
5
2
16.5
Calculate Jerry’s marginal utility from coffee at each number of cups per 2 hours. Does Jerry’s marginal utility from Coffee obey the principle of diminishing marginal utility?
Calculate Jerry’s marginal utility from Pastries at each number of hours per 2 hours. Does Jerry’s marginal utility from Pastries obey the principle of diminishing marginal utility?
Which does Ahmed enjoy more: his 4th cup of Coffee or his 4th piece of pastries?
The total utility schedule of Sharon is given below for the number of shoes she consumes. i. Calculate Sharon’s marginal utility schedule. ii. Plot a graph of total and marginal utility.iii. What is the maximum number of shoes that Sharon will consume? Explain
Chapter 6 Solutions
Principles of Economics (12th Edition)
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- Only typed Answerarrow_forwardLet us consider the case of Saiful who derives positive marginal utility from consuming apples. In the initial situation, Saiful consumed 3 apples per week. Now Saiful decides to consume 2 apples per week. What will be the effect of Saiful's decision of consuming 2 apples per week on his total utility and marginal utility? A. Total utility will increase and marginal utility will increase compared to the initial situation B. Total utility will decrease and marginal utility will increase compared to the initial situation C. Total utility will increase and marginal utility will decrease compared to the initial situation D. Total utility will decrease and marginal utility will decrease compared to the initial situationarrow_forwardThe 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?arrow_forward
- The total utility schedule of Sharon is given below for the number of shoes she consumes. i. Calculate Sharon’s marginal utility schedule. ii. Plot a graph of total and marginal utility. iii. What is the maximum number of shoes that Sharon will consume? Explain Number of Shoes Total Utility Marginal Utility1 100 2 2003 2754 3255 3506 3607 3608 355 b. Assume that Mania has $1,200 per month to spend between dinners at a Japanese restaurant and evenings at Cru, a local bar. Assume that going to Cru costs $25 and eating at the restaurant costs $14. a. Draw Mania’s budget constraint with restaurants on the horizontal axis.b. Suppose…arrow_forwardThe table details the total utility that J.J. gets from going to see basketball and hockey games during a month. J.J. had $120 to spend. Calculate the marginal utility and the marginal utility per dollar spent for both basketball and hockey given that the price is $20 and $30 respectively. Based on your calculations: how many basketball games would he attend? how many hockey games would he attend?arrow_forward2. If the ratio of marginal utility to price for steak is 2.67 and if the patron increases the consumption of steak, how does the ratio of marginal utility to price tend to change? How and why does it change the way it does? Briefly explain your answer below and make sure to address both parts of the ratio. Don't just focus on the math but also incorporate the idea of consumption.arrow_forward
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