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 16) Suppose the price of an outfit increases to 500. What is the new utility maximizing quantity of shoes and outfits for Elif? a) 3 shoes and 4 outfits b) 3 shoes and 2 outfits c) 3 shoes and 1 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 16) Suppose the price of an outfit increases to 500. What is the new utility maximizing quantity of shoes and outfits for Elif? a) 3 shoes and 4 outfits b) 3 shoes and 2 outfits c) 3 shoes and 1 outfits d) 4 shoes and 3 outfits
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
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Question
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
16) Suppose the price of an outfit increases to 500. What is the new utility maximizing quantity of shoes and outfits for Elif?
a) 3 shoes and 4 outfits
b) 3 shoes and 2 outfits
c) 3 shoes and 1 outfits
d) 4 shoes and 3 outfits
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