Suppose that Elif spends her income on shoes and outfits. The price of a shoe is 100/unit and the price of an outfit is 200/unit. Q shoes outfits total utility marginal util. MU/Ps total utility marginal util. MU/Po 1 1000 1800 2 1700 3000 3 2000 4000 4 2200 4600 15) What is the quantity of shoes and outfits that maximizes Elif’s utility? a) 3 shoes and 3 outfits b) 4 shoes and 2 outfits c) 3 shoes and 4 outfits d) 4 shoes and 3 outfits
Suppose that Elif spends her income on shoes and outfits. The price of a shoe is 100/unit and the price of an outfit is 200/unit. Q shoes outfits total utility marginal util. MU/Ps total utility marginal util. MU/Po 1 1000 1800 2 1700 3000 3 2000 4000 4 2200 4600 15) What is the quantity of shoes and outfits that maximizes Elif’s utility? a) 3 shoes and 3 outfits b) 4 shoes and 2 outfits c) 3 shoes and 4 outfits d) 4 shoes and 3 outfits
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 4CQ
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Question
For questions 15-16 make use of the following information and table.
Suppose that Elif spends her income on shoes and outfits. The price of a shoe is 100/unit and the price of an outfit is 200/unit.
Q |
shoes |
|
outfits |
|
||
|
total utility |
marginal util. |
MU/Ps |
total utility |
marginal util. |
MU/Po |
1 |
1000 |
|
|
1800 |
|
|
2 |
1700 |
|
|
3000 |
|
|
3 |
2000 |
|
|
4000 |
|
|
4 |
2200 |
|
|
4600 |
|
|
15) What is the quantity of shoes and outfits that maximizes Elif’s utility?
a) 3 shoes and 3 outfits
b) 4 shoes and 2 outfits
c) 3 shoes and 4 outfits
d) 4 shoes and 3 outfits
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