Table 1 shows Cassandra's utility from the consumption of Popcorn (P.) and Candy bars (Ce) during a week. Total Marginal utility Utility from from Рорсom Рopсom TUPC MUPC Marginal utility from Candybars Candybars Pcs MUCB Total MUPC utility from MUCE Quantity PPC TUCB 1 20 13 36 26 50 36 4 62 44 72 51 б 80 57 Ppc = P10 Pce = P5.00 1. Fill out the empty columns applying an appropriate formula. 2. Cassandra's weekly allowance is P40. Answer the following if she spends her entire income, a. How much popcorn and how many candy bars will Cassandra consume each week if she maximizes her utility? candy bars b. Show that the 2 utility maximizing conditions (equi-marginal principle and the income constraint) are satisfied. MUCB рорcom; b.1. MUPC PPc Pcs b.2. I= PPc Qpc + Pca Qcs c. If Cassandra consumes 3 bags of popcorn and 2 candy bars, compute and explain why with this combination, she is not maximizing utility.
Table 1 shows Cassandra's utility from the consumption of Popcorn (P.) and Candy bars (Ce) during a week. Total Marginal utility Utility from from Рорсom Рopсom TUPC MUPC Marginal utility from Candybars Candybars Pcs MUCB Total MUPC utility from MUCE Quantity PPC TUCB 1 20 13 36 26 50 36 4 62 44 72 51 б 80 57 Ppc = P10 Pce = P5.00 1. Fill out the empty columns applying an appropriate formula. 2. Cassandra's weekly allowance is P40. Answer the following if she spends her entire income, a. How much popcorn and how many candy bars will Cassandra consume each week if she maximizes her utility? candy bars b. Show that the 2 utility maximizing conditions (equi-marginal principle and the income constraint) are satisfied. MUCB рорcom; b.1. MUPC PPc Pcs b.2. I= PPc Qpc + Pca Qcs c. If Cassandra consumes 3 bags of popcorn and 2 candy bars, compute and explain why with this combination, she is not maximizing utility.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter6: Consumer Choice And Demand
Section: Chapter Questions
Problem 2QFR
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Transcribed Image Text:Table 1 shows Cassandra's utility from the consumption of Popcorn (P.) and
Candy bars (Ce) during a week.
Marginal
utility
from
Рорсorn | Popcorn
MUPC
Total
utility
from
Total
Utility
from
Marginal
utility
from
MUPC
MUCA
Quantity
PPc Candybars Candybars PB
TUCB
TUPC
MUCB
1
20
13
36
26
50
36
4
62
44
72
51
6.
80
57
PPc = P10
PCB = P5.00
1. Fill out the empty columns applying an appropriate formula.
2. Cassandra's weekly allowance is P40. Answer the following if she
spends her entire income,
a. How much popcorn and how many candy bars will Cassandra
consume each week if she maximizes her utility?.
candy bars
рорcorn;
b. Show that the 2 utility maximizing conditions (equi-marginal
principle and the income constraint) are satisfied.
b.1. MUPC
MUCB
PPc
PcB
b.2. I= PPc QPc + PcB QcB
c. If Cassandra consumes 3 bags of popcorn and 2 candy bars,
compute and explain why with this combination, she is not
maximizing utility.
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