Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table below to answer the following question Total Utility of Cereal Total Utility of Total Utility of Clothing 25 Quantity Вooks 1 50 75 90 135 45 3 120 175 60 4 140 205 70 155 225 78 a. If the price of cereal is $2, the price of books is $3 and the price of clothing is $1, at what point does Douglas maximize his utility? Explain.
Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table below to answer the following question Total Utility of Cereal Total Utility of Total Utility of Clothing 25 Quantity Вooks 1 50 75 90 135 45 3 120 175 60 4 140 205 70 155 225 78 a. If the price of cereal is $2, the price of books is $3 and the price of clothing is $1, at what point does Douglas maximize his utility? Explain.
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
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