5. Each week, Bill, Mary, and Jane select the quantity of two goods, x, and x2, that they will consume in order to maximize their respective utilities. They each spend their entire weekly income on these two goods. a. Suppose you are given the following information about the choices that Bill makes over a three-week period: P, P, Week 1 10 20 1 40 Week 2 7 19 1 40 Week 3 8 31 1 55 Did Bill's utility increase or decrease between week 1 and week 2? Between week 1 and week 3? Explain using a graph to support your answer.
5. Each week, Bill, Mary, and Jane select the quantity of two goods, x, and x2, that they will consume in order to maximize their respective utilities. They each spend their entire weekly income on these two goods. a. Suppose you are given the following information about the choices that Bill makes over a three-week period: P, P, Week 1 10 20 1 40 Week 2 7 19 1 40 Week 3 8 31 1 55 Did Bill's utility increase or decrease between week 1 and week 2? Between week 1 and week 3? Explain using a graph to support your answer.
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
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Question
Graph is necessary
Transcribed Image Text:5. Each week, Bill, Mary, and Jane select the quantity of two goods, x, and x2, that they will
consume in order to maximize their respective utilities. They each spend their entire weekly
income on these two goods.
a. Suppose you are given the following information about the choices that Bill makes over a
three-week period:
P
P,
Week 1
10
20
2
1
40
Week 2
19
3
1
40
Week 3
8
31
3
1
55
Did Bill's utility increase or decrease between week 1 and week 2? Between week 1 and
week 3? Explain using a graph to support your answer.
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