The table below shows the total benefit, in dollars, that Courtney derives from consuming two goods, Good F and candy bars. Total Benefit of Total Quantity of Good F Quantity of Candy Bars Benefit of Good F Candy Bars $0 $0 1 $40 1 $80 $70 $120 3 $90 3 $140 4 $100 4 $152 5 $103 $156 6 $105 $156 Courtney has a limited weekly income of $20, and she spends it all on Good F and candy bars. Assume the price of Good F is $2 per unit and the price of a candy bar is $4. (a) Identify the quantity of Good F and the quantity of candy bars that will maximize Courtney's total benefit given her weekly income. Explain using marginal analysis. (b) Calculate Courtney's consumer surplus from the fourth candy bar. Show your work. (c) If Courtney's weekly income decreases from $20 to $18, would Courtney be able to buy 5 units of Good E and 2 candy bars? Explain using numbers 2. 2.

The table below shows the total benefit, in dollars, that Courtney derives from consuming two goods, Good F and candy bars. Total Benefit of Total Quantity of Good F Quantity of Candy Bars Benefit of Good F Candy Bars $0 $0 1 $40 1 $80 $70 $120 3 $90 3 $140 4 $100 4 $152 5 $103 $156 6 $105 $156 Courtney has a limited weekly income of $20, and she spends it all on Good F and candy bars. Assume the price of Good F is $2 per unit and the price of a candy bar is $4. (a) Identify the quantity of Good F and the quantity of candy bars that will maximize Courtney's total benefit given her weekly income. Explain using marginal analysis. (b) Calculate Courtney's consumer surplus from the fourth candy bar. Show your work. (c) If Courtney's weekly income decreases from $20 to $18, would Courtney be able to buy 5 units of Good E and 2 candy bars? Explain using numbers 2. 2.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 1SCQ: Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can...

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