Number of Cinema Tickets Total Utility MU/P for Cinema Tickets Marginal Utility Price of a Cinema Ticket 140 240 330 400 440 470 2 5 MU/P for Number of Concert Tickets Total Utility Marginal Utility Price of a Concert Ticket Concert Tickets 240 440 600 720 800 850 a. If the price of a cinema ticket is 20 TL, the price of a concert ticket is 40 TL and the income is 120 TL, draw the budget line. b. Find marginal utility for each consumption level for both products and show your work in Table. Find the utility maximizing level of consumption bundle if the income of the C. consumer is 120 TL. Show the utility maximizing level of consumption for each product on the table. Explain your answer by stating the utility maximizing rule.
Number of Cinema Tickets Total Utility MU/P for Cinema Tickets Marginal Utility Price of a Cinema Ticket 140 240 330 400 440 470 2 5 MU/P for Number of Concert Tickets Total Utility Marginal Utility Price of a Concert Ticket Concert Tickets 240 440 600 720 800 850 a. If the price of a cinema ticket is 20 TL, the price of a concert ticket is 40 TL and the income is 120 TL, draw the budget line. b. Find marginal utility for each consumption level for both products and show your work in Table. Find the utility maximizing level of consumption bundle if the income of the C. consumer is 120 TL. Show the utility maximizing level of consumption for each product on the table. Explain your answer by stating the utility maximizing rule.
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
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Transcribed Image Text:1.
* Refer to the information provided in table below.
MU/P for
Number of Cinema Tickets Total Utility Marginal Utility
Price of a Cinema Ticket
Cinema Tickets
140
240
3
330
400
440
6.
470
MU/P for
Number of Concert Tickets
Total Utility Marginal Utility
Price of a Concert Ticket
Concert Tickets
240
440
3
600
720
800
6.
850
If the price of a cinema ticket is 20 TL, the price of a concert ticket is 40 TL and the
a.
income is 120 TL, draw the budget line.
b.
Find marginal utility for each consumption level for both products and show your
work in Table.
Find the utility maximizing level of consumption bundle if the income of the
C.
consumer is 120 TL. Show the utility maximizing level of consumption for each product on
the table. Explain your answer by stating the utility maximizing rule.
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