Barry consumes tacos and pepsi. The price of tacos is initially $2.00 per taco and the price of pepsi is $4.00 per can and Barry has $24.00 to spend. The marginal utility that each good yields is illustrated in the table below, along with the marginal utility per dollar spent on each good at these prices. Tacos 0 1 MUT 10 2 8 3 6 4 4 5 2 What is Barry's demand for tacos? MUT PT - 5 4 3 2 1 Pepsi 0 1 2 3 4 5 MUp 20 16 12 8 4 MUp Pp - 5 4 3 2 1 1.) Using the point drawing tool, plot the quantity of tacos Barry demands when the price is $2.00. Label this point 'A'. 2.) Using the point drawing tool, plot the quantity of tacos Barry demands if the price of tacos increases to $4.00. Label this point 'B'. 3.) Using the line drawing tool, draw Barry's demand curve for tacos. Label this line 'Demand". Carefully follow the instructions above, and only draw the required objects. Price (dollars per taco) 10.00 9.00- 8.00- 7.00- 6.00- 5.00 4.00- 3.00- 2.00- 1.00- 0.00+ 0 1 2 3 4 5 Tacos 6 8 9 10 Q Q
Barry consumes tacos and pepsi. The price of tacos is initially $2.00 per taco and the price of pepsi is $4.00 per can and Barry has $24.00 to spend. The marginal utility that each good yields is illustrated in the table below, along with the marginal utility per dollar spent on each good at these prices. Tacos 0 1 MUT 10 2 8 3 6 4 4 5 2 What is Barry's demand for tacos? MUT PT - 5 4 3 2 1 Pepsi 0 1 2 3 4 5 MUp 20 16 12 8 4 MUp Pp - 5 4 3 2 1 1.) Using the point drawing tool, plot the quantity of tacos Barry demands when the price is $2.00. Label this point 'A'. 2.) Using the point drawing tool, plot the quantity of tacos Barry demands if the price of tacos increases to $4.00. Label this point 'B'. 3.) Using the line drawing tool, draw Barry's demand curve for tacos. Label this line 'Demand". Carefully follow the instructions above, and only draw the required objects. Price (dollars per taco) 10.00 9.00- 8.00- 7.00- 6.00- 5.00 4.00- 3.00- 2.00- 1.00- 0.00+ 0 1 2 3 4 5 Tacos 6 8 9 10 Q Q
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 9P
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Transcribed Image Text:Barry consumes tacos and pepsi. The price of tacos is initially $2.00 per taco and the price of
pepsi is $4.00 per can and Barry has $24.00 to spend. The marginal utility that each good yields is
illustrated in the table below, along with the marginal utility per dollar spent on each good at these
prices.
Tacos MUT
0
1
2
3
4
5
10
8
6
4
2
What is Barry's demand for tacos?
MUT
P₁
5
4
3
2
1
Pepsi
0
1
2
3
4
5
MUp
20
16
12
8
4
MUP
Pp
5
4
3
2
1
1.) Using the point drawing tool, plot the quantity of tacos Barry demands when the price is $2.00.
Label this point 'A'.
2.) Using the point drawing tool, plot the quantity of tacos Barry demands if the price of tacos
increases to $4.00. Label this point 'B'.
3.) Using the line drawing tool, draw Barry's demand curve for tacos. Label this line 'Demand'.
Carefully follow the instructions above. and only draw the required obiects.
Price (dollars per taco)
10.00
9.00-
8.00-
7.00-
6.00-
5.00-
4.00-
3.00+
2.00+
1.00-
0.00+
0
1 2
3
4
5
Tacos
6
-co
7 8
9 10
o
o
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