QUESTION 1 1. Consider the following data from the table about a consumer. You have $16 to spend on dessert Price of Ice Cream = $2 per scoop Price of Cake: $4 per slice Quantity of TU Ice MU Ice MU/P Quantity Ice Cream Cream Cream TU MU MU/P of cake Cake Cake 1 4 1 10 2 3 2 8 3 2 3 6 4 1 A 4 5 0 5 2 The amount of total utility you'd enjoy at that level of consumption What is: A. The marginal utility adjusted for price for a quantity of 4 ice cream? B. What is the total utility of 5 slices of cake? C. What will be the optimal consumption bundle in this example Cream Cake Ice
QUESTION 1 1. Consider the following data from the table about a consumer. You have $16 to spend on dessert Price of Ice Cream = $2 per scoop Price of Cake: $4 per slice Quantity of TU Ice MU Ice MU/P Quantity Ice Cream Cream Cream TU MU MU/P of cake Cake Cake 1 4 1 10 2 3 2 8 3 2 3 6 4 1 A 4 5 0 5 2 The amount of total utility you'd enjoy at that level of consumption What is: A. The marginal utility adjusted for price for a quantity of 4 ice cream? B. What is the total utility of 5 slices of cake? C. What will be the optimal consumption bundle in this example Cream Cake Ice
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 8P
Related questions
Question
Transcribed Image Text:QUESTION 1 Consider the following data from the table about a consumer. You have $16 to spend on dessert Price of
Ice Cream = $2 per scoop Price of Cake: $4 per slice What is: A. The marginal utility adjusted for price for a quantity of 4
ice cream? B. What is the total utility of 5 slices of cake? C. What will be the optimal consumption bundle in this
example _ Cake _Ice Cream
QUESTION 1
1. Consider the following data from the table about a consumer.
You have $16 to spend on dessert
Price of Ice Cream =$2 per scoop Price of Cake: $4 per slice
Quantity of TU Ice MU Ice MU/P Quantity
Ice Cream Cream Cream
TU MU MU/P
of cake
Cake Cake
1
4
1
10
2
3
2
8
3
2
3
6
4
1
4
4
5
0
5
2
The amount of total utility you'd enjoy at that level
of consumption
What is:
A. The marginal utility adjusted for price for a quantity of 4 ice cream?
B. What is the total utility of 5 slices of cake?
C. What will be the optimal consumption bundle in this example
Cream
Cake
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
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.Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning