Manuela has $27 to spend on food. She uses it to buy hamburgers and frozen pizza
ID: 1135698 • Letter: M
Question
Manuela has $27 to spend on food. She uses it to buy hamburgers and frozen pizzas. The table below shows Manuela's marginal utility (MU) for both hamburgers and frozen pizzas. Assume that Manuela is a rational consumer who wants to maximize her utility. If the price of a hamburger is $5 and the price of a frozen pizza is $4, Manuela will choose to buy____ hamburgers. Manuela will choose to buy____ frozen pizzas.
Figure 6-7 Marina! Utility per Hamburger Quantity of Frozen Pizzas Marinal Utility per Pizza Quantity Hamburgers 18 14 12 10Explanation / Answer
Quantity of hamburgers Marginal Utility per Hamburger MUH/PH Quantity of Frozen pizzas MarginalUtility per pizza MUpizza/Ppizza 1 30 6 1 18 4.5 2 25 5 2 16 4 3 20 4 3 14 3.5 4 15 3 4 12 3 5 10 2 5 10 2.5 Manuela will consume pihamburger till MUH/PH > MUpizza/Ppizza So, Manuela will consume 3 hamburgers.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.