suppose the price per gallon of water is 1 cent and the price per carat of diamond is $10,000. Is the total utility of diamonds 10,000 times as great as the total utility received from water?

Alex, who was convinced that "Football is coming home", was very excited for the World Cup last year. Unfortunately, he realized that his favourite Paul Gascoigne jersey from Euro 1996 was getting old, so he wanted to buy a new one before England's first game the following week. He could either buy a 2014 James Milner shirt from retailer A, which would make him totally happy (utility=1), or a 2006 David Beckham shirt from retailer B, which gives him a utility of 0.8. However, the shirts are not available today. There is a 50% chance that retailer A will have the shirt on the week-end, and 70% chance that retailer B will have theirs on the week-end. Due to time and work constraints, Alex can only visit one of these retailers before the tournament starts, otherwise he will have to keep his old 1996 shirt, which gives him a utility of 0.5. He can also ask his friend Nathan to check both places in the morning. But being a Welsh supporter, Nathan will not do it for free and wants some…

What are the two conditions that are met if a consumer is maximizing utility?

Fill out the table below to give an example of each type of utility based on the scenario. Sunglasses in a kiosk in the mall in July; buy one, get one free Christmas wrapping paper in a clearance bin at a craft store in January Hearing aid batteries at the gift shop on a cruise Umbrellas at an outdoor sporting event Firewood bundles at the visitors center at the state park