Suppose Andy can buy two goods: slices of pizza and bottles of beer. The margina
ID: 1159841 • Letter: S
Question
Suppose Andy can buy two goods: slices of pizza and bottles of beer. The marginal (or additional) utility that he gets from consuming the pizza and beer are shown below.
Pizza, MU of first slice = $5 Pizza, MU of second slice = $3 Pizza, MU of third slice = $1
Beer, MU of first bottle = $6 Beer, MU of second bottle = $4 Beer, MU of third bottle = $3
The price of each slice of pizza is $2, the price of each bottle beer = $3.
D. Four slices of pizza and Four bottles of beer.
Suppose Andy can buy two goods: slices of pizza and bottles of beer. The marginal (or additional) utility that he gets from consuming the pizza and beer are shown below.
Pizza, MU of first slice = $5 Pizza, MU of second slice = $3 Pizza, MU of third slice = $1
Beer, MU of first bottle = $6 Beer, MU of second bottle = $4 Beer, MU of third bottle = $3
The price of each slice of pizza is $2, the price of each bottle beer = $3.
Suppose Andy can buy two goods: slices of pizza and bottles of beer. The marginal (or additional) utility that he gets from consuming the pizza and beer are shown below.
Pizza, MU of first slice = $5 Pizza, MU of second slice = $3 Pizza, MU of third slice = $1
Beer, MU of first bottle = $6 Beer, MU of second bottle = $4 Beer, MU of third bottle = $3
The price of each slice of pizza is $2, the price of each bottle beer = $3.
D. Six slices of pizza and zero bottles of beer.
Suppose Andy's friend says he will treat Andy to the meal (as a result, the price of the pizza slices and beer is basically zero to Andy). How many slices of pizza and bottles of beer will Andy choose to have (assuming he wishes to maximize his total utility)? A. One slice of pizza and one bottle of beer. B. Three slices of pizza and one bottle of beer. C. One slice of pizza and four bottles of beer.D. Four slices of pizza and Four bottles of beer.
Suppose Andy can buy two goods: slices of pizza and bottles of beer. The marginal (or additional) utility that he gets from consuming the pizza and beer are shown below.
Pizza, MU of first slice = $5 Pizza, MU of second slice = $3 Pizza, MU of third slice = $1
Beer, MU of first bottle = $6 Beer, MU of second bottle = $4 Beer, MU of third bottle = $3
The price of each slice of pizza is $2, the price of each bottle beer = $3.
Suppose Andy can buy two goods: slices of pizza and bottles of beer. The marginal (or additional) utility that he gets from consuming the pizza and beer are shown below.
Pizza, MU of first slice = $5 Pizza, MU of second slice = $3 Pizza, MU of third slice = $1
Beer, MU of first bottle = $6 Beer, MU of second bottle = $4 Beer, MU of third bottle = $3
The price of each slice of pizza is $2, the price of each bottle beer = $3.
D. Six slices of pizza and zero bottles of beer.
Explanation / Answer
At equilibrium MUx/Px = MUy/Py
Answer 1) option d, since effectively Px ,Py = 0
& MU from x&y = 0 from 4 th unit onwards
Answer 2 ) now Px/Py =MUx/MUy
X = pizza, y= beer
Px= 2, Py= 3
Total cost : total utility
optionA) 11. 18
B)10. 18
C)15. 22
D)13. 21
Answer is option B, total utility per unit of money is maximum in option b
Answer 3) 2x+3y = 13 : B.C.
Option b &d are wrong, bcoz budget is not exhausted.
Answer is option A)
Bcoz total utility from 2 pizza , 5+3 = 8
From 3 beer = 6+4+3 = 13
Total consumption utility = 8+13 = 21
For c , MU from 4 the pizza = 0
So total utility 9+ 6= 15
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.