Terry attends college and works part-time in a drug store. She can work up to 40 hours per week and is paid $9 per hour. With her schoolwork and other responsibilities, she only has 40 hours per week total to devote to work and leisure. The following table shows her utility from different levels of leisure and income. Hours of Leisure Total Utility from Leisure Marginal Utility of Leisure Work Hours Income Total Utility from Income Marginal Utility from Income 5 18 5 45 35 10 34 10 90 59 15 48 15 135 77 20 56 20 180 86 25 60 25 225 92 30 65 30 270 98 35 69 35 315 103 40 72 40 360 107 Terry decides to decrease her work hours from 20 to 10. 8. What would be marginal utility loss from less income?
Terry attends college and works part-time in a drug store. She can work up to 40 hours per week and is paid $9 per hour. With her schoolwork and other responsibilities, she only has 40 hours per week total to devote to work and leisure. The following table shows her utility from different levels of leisure and income. Hours of Leisure Total Utility from Leisure Marginal Utility of Leisure Work Hours Income Total Utility from Income Marginal Utility from Income 5 18 5 45 35 10 34 10 90 59 15 48 15 135 77 20 56 20 180 86 25 60 25 225 92 30 65 30 270 98 35 69 35 315 103 40 72 40 360 107 Terry decides to decrease her work hours from 20 to 10. 8. What would be marginal utility loss from less income?
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 16SQ
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Terry attends college and works part-time in a drug store. She can work up to 40 hours per week and is paid $9 per hour. With her schoolwork and other responsibilities, she only has 40 hours per week total to devote to work and leisure. The following table shows her utility from different levels of leisure and income.
|
Hours of Leisure |
Total Utility from Leisure |
|
Work Hours |
Income |
Total Utility from Income |
Marginal Utility from Income |
|
5 |
18 |
|
5 |
45 |
35 |
|
|
10 |
34 |
|
10 |
90 |
59 |
|
|
15 |
48 |
|
15 |
135 |
77 |
|
|
20 |
56 |
|
20 |
180 |
86 |
|
|
25 |
60 |
|
25 |
225 |
92 |
|
|
30 |
65 |
|
30 |
270 |
98 |
|
|
35 |
69 |
|
35 |
315 |
103 |
|
|
40 |
72 |
|
40 |
360 |
107 |
|
Terry decides to decrease her work hours from 20 to 10.
8. What would be marginal utility loss from less income?
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