When Cindy's income is $70 a month, the price of an hour of golf is $10 and the price of an hour of tennis is $5, Cindy plays golf for 5 hours a month and plays tennis for 4 hours a month. Then Cindy loses her math tutoring job and the amount she has to spend on golf and tennis falls from $70 to $35 a month. How many hours does Cindy now spend playing golf? For Cindy, is golf a normal good or an inferior good? How many hours does Cindy now spend playing tennis? For Cindy, is tennis a normal good or an inferior good? Hours per month Marginal utility Marginal utility from golf from tennis 1 80 40 2 60 36 40 30 4 30 10 5 20 6 10 7 6 1 To maximize her total utility, the number of hours that Cindy spends golfing is

When Cindy's income is $70 a month, the price of an hour of golf is $10 and the price of an hour of tennis is $5, Cindy plays golf for 5 hours a month and plays tennis for 4 hours a month. Then Cindy loses her math tutoring job and the amount she has to spend on golf and tennis falls from $70 to $35 a month. How many hours does Cindy now spend playing golf? For Cindy, is golf a normal good or an inferior good? How many hours does Cindy now spend playing tennis? For Cindy, is tennis a normal good or an inferior good? Hours per month Marginal utility Marginal utility from golf from tennis 1 80 40 2 60 36 40 30 4 30 10 5 20 6 10 7 6 1 To maximize her total utility, the number of hours that Cindy spends golfing is

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter20: Consumer Choice And Elasticity

Section: Chapter Questions

Problem 4CQ

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1. A consumer has an income of $3024 to spend each day. The only two goods the consumer is interested in purchasing are goods A and B. The marginal-utility schedules for these two goods are shown in the table below. The price of B does not change and is $378. The marginal utility per dollar from B is also shown in the table. But the price of A varies as shown in the table. The marginal utility per dollar from A when the price of A is $1512 and $756 is shown in the following table. Good A Good B Quantity MU MU/$1512 MU/$756 MU MU/$378 1 24 2 15 3 12 4 8 5 6 6 4 48 32 24 16 8 4 ||||| ||||| |||