Marla has $7.00 to spend on breakfast. Unfortunately, the snack bar in the building where she works has only three Items: muffins at $2.00 each, soup at $1.00, and cappuccinos at $1.50 each. a) Given her total utility figures in table below, Complete the MU columns. Round your answers to whole numbers. E Quantity 1 2 3 4 5 Muffins TU 65 125 155 165 170 Soup: Muffins MU b) How should she allocate her budget? Muffin(s) Muffins MU per $ Soup TU 60 100 130 150 152 Soup MU Soup MU per $ Cappuccinos TU 125 185 230 270 286 Cappuccinos MU Cappuccinos MU per $

Marla has $7.00 to spend on breakfast. Unfortunately, the snack bar in the building where she works has only three Items: muffins at $2.00 each, soup at $1.00, and cappuccinos at $1.50 each. a) Given her total utility figures in table below, Complete the MU columns. Round your answers to whole numbers. E Quantity 1 2 3 4 5 Muffins TU 65 125 155 165 170 Soup: Muffins MU b) How should she allocate her budget? Muffin(s) Muffins MU per $ Soup TU 60 100 130 150 152 Soup MU Soup MU per $ Cappuccinos TU 125 185 230 270 286 Cappuccinos MU Cappuccinos MU per $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Gabriella obtains utility from consuming granola bars and cappuccino. The following table shows the total utility (TU) she obtains from consuming different amounts of the two goods. The price of a granola bar is $3 and the price of a cup of cappuccino is $2. She has allocated $9 to spend on granola bars and cappuccino. 1. Complete the table by calculating the marginal utility (MU) and the MU per dollar spent on each granola bar and cup of cappuccino. 2. What is Gabriella’s optimal consumption bundle of granola bars and cups of cappuccino?
Ethan has $17 per week in his food budget. He splits his choices between pizzas and hot dogs. Each slice of pizza costs $2 while each hot dog costs $3. The total utility (TU) from each of these choices is set out in the table below. Marginal utility for pizza and hotdog (MU/$) for TU MU MU pizza hotdog Units TU pizza pizza hotdog 1 10 5 2 18 9 3 20 12 4 22 15 5 23 17 1. Complete the table calculating marginal utility (MU) and marginal utility per dollar (MU/$) for both choices. Remember to show your work for at least one unit! 2. What is Ethan's utility maximizing choice? Justify your answer by showing your work! HINT: use the budget constraint equation to show the optimal choice! (MU/$) for hotdog
Quantity of Hot Marginal Utility from Cocoa Hot Cocoa 1 2 3 4 5 4 8 2 8 7 16 Utility of Hot Cocoa and Donuts. 5 4 1 2 3 4 5 Quantity of Marginal Utility from Donuts Donuts The price of hot cocoa is $2 and the price of a donut is $1. What is the marginal utility per dollar for two donuts? 10 8 6 3
You have 6 hours to study for 2 exams tomorrow. The relationship between the time studying and test scores is shown below. Economics Psychology Hours 0 1 2 3 134 4 5 6 Score 55 3 70 70 63 76 81 85 88 Hours 0 1 2 3 4 5 6 Score 55 16 70 73 75 75 66 76 a. Use the rule for determining optimal purchases to decide how many hours you should study each subject. Treat each point on an exam like 1 unit of utility and assume you are equally interested in doing well in economics and psychology. You should study economics for hours and psychology for hours.
The table below shows Cedric's marginal utility for soda and cookies at each quantity. What is his total utility if he consumes 6 soda and 3 cookies? Quantity of Soda Marginal Utility Quantity of Cookies Marginal Utility 1 48 1 39 2 46 2 37 3 44 3 35 4 41 4 32 5 37 5 29 6 34 6 25 7 31 7 22 8 25 8 18 9 18 9 14 10 12 10 10 11 5 11 7 Group of answer choices 379 total utility units 66 total utility units 314 total utility units
Question 2
The table shows the total utility (TU) that James receives from consuming different amounts of two goods X and Y, per month. Quantity TUx MUx MUx/Px TUy MUy MUy/Py 0 0 0 0 0 0 0 1 50 50 16.67 75 75 25.00 2 88 38 12.67 117 42 14.00 3 121 33 11.00 153 36 12.00 4 150 29 9.67 181 28 9.33 5 175 25 8.33 206 25 8.33 6 196 21 7.00 225 19 6.33 7 214 18 6.00 243 18 6.00 8 229 15 5.00 260 17 5.67 9 241 12 4.00 276 16 5.33 d.How much total utility will James experience by buying the utility-maximizing combination? e.Suppose the price of good Y increases to $6. How many units of X and Y will he buy to maximize his utility now?
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Enrique is a movie buff. He likes to watch on demand movies from his cable company, which cost $5 each, and so likes to go to the local movie house, which charges $15 a ticket. Suppose that given his budget and his tentative spending plans, the marginal utility from a cable movie is 15 utils and the marginal utility of a movie at the local cinema is 45 utils. Assuming he is spending his entire budget, Enrique is currently maximizing his utility Enrique can increase his utility by buying more cable movies and watching fewer cinema movies Enrique can increase his utility by buying more cinema movies and fewer cable movies
solve the question given in the image.
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