a) Complete the table below: Quantity of Cheese Cakes (slices per day) Total Utility (TU) Marginal Utility (MU) 1 20 2 36 3 48 4 55 5 50 i) After how many slices do you get bored of Cheese cakes? ii) After how many slices do you feel sick? b) Using the values from the above table, “Plot” (on separate graphs) i) Total Utility ii) Marginal Utility graphs Q2. You drink only Coffee or Orange juice Price of Coffee (dollars per cup) Marginal Utility of Coffee (for 1st cup) Price of Orange Juice (dollars per glass) Marginal Utility of Orange Juice (for 1st glass) $3 60 $2 50 a) Calculate the MU per dollar for Coffee b) Calculate the MU per dollar for Orange Juice c) If you have 1 cup of Coffee and 1 glass of Orange juice, are you in Equilibrium? Explain briefly. d) If not, how should you change your consumption of these 2 items
a) Complete the table below: Quantity of Cheese Cakes (slices per day) Total Utility (TU) Marginal Utility (MU) 1 20 2 36 3 48 4 55 5 50 i) After how many slices do you get bored of Cheese cakes? ii) After how many slices do you feel sick? b) Using the values from the above table, “Plot” (on separate graphs) i) Total Utility ii) Marginal Utility graphs Q2. You drink only Coffee or Orange juice Price of Coffee (dollars per cup) Marginal Utility of Coffee (for 1st cup) Price of Orange Juice (dollars per glass) Marginal Utility of Orange Juice (for 1st glass) $3 60 $2 50 a) Calculate the MU per dollar for Coffee b) Calculate the MU per dollar for Orange Juice c) If you have 1 cup of Coffee and 1 glass of Orange juice, are you in Equilibrium? Explain briefly. d) If not, how should you change your consumption of these 2 items
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
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Question
Q1. a) Complete the table below:
|
Quantity of Cheese Cakes (slices per day) |
Total Utility (TU) |
|
|
1 |
20 |
|
|
2 |
36 |
|
|
3 |
48 |
|
|
4 |
55 |
|
|
5 |
50 |
|
- i) After how many slices do you get bored of Cheese cakes?
- ii) After how many slices do you feel sick?
- b) Using the values from the above table, “Plot” (on separate graphs)
- i) Total Utility
- ii) Marginal Utility graphs
Q2. You drink only Coffee or Orange juice
|
Price of Coffee (dollars per cup) |
Marginal Utility of Coffee (for 1st cup) |
Price of Orange Juice (dollars per glass) |
Marginal Utility of Orange Juice (for 1st glass) |
|
$3 |
60 |
$2 |
50 |
- a) Calculate the MU per dollar for Coffee
- b) Calculate the MU per dollar for Orange Juice
- c) If you have 1 cup of Coffee and 1 glass of Orange juice, are you in Equilibrium? Explain briefly.
d) If not, how should you change your consumption of these 2 items?
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