Quanity Utility from Video Games Utility from Novels Marginal Utilty  Video Games Marginal Utilty  Novels Marginal Utilty  per Dollar Video Games Marginal Utilty  per Dollar Novels 0 0 0         1 30 30         2 40 38         3 48 44         4 54 46         5 58 47         The table shows the utility that Mark gets from the consumption of video games and novels. Mark has $100 per month to spend on video games and novels. Video game cost $20 each and novels cost$20 Calculate Mark’s utility  from  Video game Novels Calculate the MU per dollar of Mark’s  consumption  choices State the optimal number of video games  and the optimal number of novels  that  Mark will conume in a month. State how each of the following will affect the quantity of VG  and N consumed by Abina An  increase in the money she has to spend  by $20,  ceteris paribus An  increase in the price of ONE of the goods,  ceteris paribus

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
icon
Related questions
Question

Quanity

Utility from Video Games

Utility from

Novels

Marginal Utilty 

Video Games

Marginal Utilty 


Novels

Marginal Utilty  per Dollar

Video Games

Marginal Utilty  per Dollar

Novels

0

0

0

       

1

30

30

       

2

40

38

       

3

48

44

       

4

54

46

       

5

58

47

       



The table shows the utility that Mark gets from the consumption of video games and novels. Mark has $100 per month to spend on video games and novels. Video game cost $20 each and novels cost$20

  1. Calculate Mark’s utility  from 
  • Video game
  • Novels
  1. Calculate the MU per dollar of Mark’s  consumption  choices
  2. State the optimal number of video games  and the optimal number of novels  that  Mark will conume in a month.
  3. State how each of the following will affect the quantity of VG  and N consumed by Abina
  • An  increase in the money she has to spend  by $20,  ceteris paribus
  • An  increase in the price of ONE of the goods,  ceteris paribus
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Risk Aversion
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
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning