34) Consider Dianna who has a $25 fast food budget per month. She can purchase salads (S), hamburgers (H), or chicken strips (C). The price of a salad is Ps=$3, the price of a hamburger is PB-$2 and the price of chicken strips is Pc $4. Fill in the table below. You will use your solutions to answer questions 34-36. # Salads 1 2 3 4 5 MU Salads b) 3; 2; 3 c) 4; 3; 4 d) 5; 4; 5 54 48 42 36 30 b) $12 c) $14 d) $16 MU/P Salads # Hamburgers 1 2 3 4 5 MU hamburgers In the optimal consumption bundle for Dianna, she will purchase chicken strips. a) 2; 1; 2 34 28 22 16 10 36) Dianna total utility from her consumption bundle is a) 126 b) 504 c) 106 d) 398 MU/P # Hamburgers Chicken Strips 1 2 7 salads, 3 4 5 MU Chicken 35) Dianna's utility is maximized where the marginal utility per dollar spent on each item is equal to a) $10 Strips 72 MU/P Chicken Strips 64 56 48 40 hamburgers, and

Suppose you have a budget of 30 to spend on two goods: pizzas and burgers. Each pizza is $5 while each burger is $10. Suppose you already purchased 6 pizzas. What is the maximum number of burgers that you can buy with the remaining funds in your budget?

Use the table below to answer the following questions. Windsurfing equipment rents for $10 per hour and snorkeling equipment rents for $5 per hour. Table 8.3.1 Hours Total Utility Total Utility per Month from Windsurfing from Snorkeling A. 0.64 B. 28.6 C. 44.4 D. zero 1 E. 1.55 23410 2 Consider Devon's total utility from snorkeling and windsurfing in Table 8.3.1. Suppose that Devon's total income rises from $35 to $55, ceteris paribus. Given that Devon changes his choice of windsurfing and snorkeling, what is his income elasticity for windsurfing? Select one: 3 5 60 110 150 180 200 20 38 53 64 70 O

Suppose you go to Trader Joe's to buy fruit for the week. You only like apples (A) and bananas (B) and your weekly fruit budget is $11. When you arrive at Trader Joe's you notice that the price of an apple is $1.00 and the price of a banana is $0.25. QUESTION #1: How many apples and bananas should you buy? QUESTION #2: When you have found the answer, draw a diagram that shows the outcome. Step #1. Determine your preferences. Let's suppose that your preferences can be represented by the following utility function: U(A, B) = AªBß = A0.40 B0.60 FYI: This utility function is known as a Cobb-Douglas utility function. It is the most commonly used function used in economics! The reason we like it so much is that it has: 1. Constant returns (double your consumption of A and B and your utility doubles); a + B = 1 2. Diminishing marginal utility (the extra utility gained from consuming A (or B) decreases as you consume more of the A good (or B good); a 0.40); B > a. Step #2: Determine your…

Price for X is $1 and Y is $2.  Budget is $9.            Good X                Good Y       Quantity Marginal Utility Quantity Marginal Utility 1 8 1 10 2 7 2 8 3 6 3 6 4 5 4 4 5 4 5 3 6 3 6 2 7 2 7 1               To maximize utility, the consumer will buy how much of good X and how much of good Y?

Q1: Zainab has a weekly budget of $48, which she likes to spend on magazines and pies. A. If the price of a magazine is $8 each, what is the maximum number of magazines she could buy in a week? B. If the price of a pie is $24, what is the maximum number of pies she could buy in a week?

Suppose Amanda spends all of her income of $1,000 on mascara (M) and chocolate (C) The prices per unit are PM = $5 and PC = $10. What is the maximum amount of chocolate that she can consume?   a. 200 b. 5 c. 100 d. 1,000

True or false.  A budget constraint, budget line or budget set is a graphical way to illustrate all possible combinations of two goods that a person can afford.

Your parents give you $500 per month to spend on college expenses or other personal expenses. Your parents change their mind, and decide to make a matching offer. They will give $0.25 for every $1 you spend on college expenses, but only up to $100 extra. Graph the effect of a matching allowance increase of $0.25 for each dollar you spend on college expenses, with a $100 limit, on your budget constraint.

Suppose you had a budget of $20.00 and the prices of a burger and a slice of pizza are $4.00 and $2.00 respectively.   What is the marginal utility per dollar spent for the fourth burger?