Suppose a consumer has a fixed amount to spend each week on iTunes songs ($1 each) and movies ($6 each). For the combination she chose this week, the marginal utility of movies is 30 and the marginal utility of songs is 3. For next week she should (increase/decrease) the number of songs and ___________(increase/decrease) the number of movies.

The table shows Jill’s utility schedule for pancakes and coffee   # pancakes total utility from pancakes MU from last pancake   # cups of coffee total utility from coffee MU from last cup of coffee   1 10 10   1 12 12   2 18     2 22     3 24     3 30     4 28     4 36     5 30     5 40     6 30     6 42         What is Jill’s marginal utility of consuming the 6th pancake?   The table shows Jill’s utility schedule for pancakes and coffee   # pancakes total utility from pancakes MU from last pancake   # cups of coffee total utility from coffee MU from last cup of coffee   1 10 10   1 12 12   2 18     2 22     3 24     3 30     4 28     4 36     5 30     5 40     6 30     6 42         Suppose that the price of pancakes is…

Marie has a weekly budget of $2400, which she likes to spend on magazines and pies. If the price of one magazine is $40, what is the maximum number of magazines she can buy in a week? If the price of a pie is $120, what is the maximum number of pies she can buy in a week? Compute and show Marie’s budget schedule for pies and magazines. Draw Marie’s budget line with pies on the horizontal axis and magazines on the vertical axis.

NOTE: THIS IS FOR A NON-GRADED QUIZ.   Louis has stable preferences and consumes two goods, wine and cheese. In 1994, the price of wine was $4/glass and the price of cheese was $2/ounce. Louis's income was $60 and he bought 12 glasses of wine and 6 ounces of cheese. In 1995, wine costs $2/glass and cheese costs $4/ounce. Louis's income is still $60.   a.     Draw both years' budget lines. Where do they cross? b.     What is Louis's marginal rate of substitution of wine for cheese in 1994? [hint: you can't use calculus]