The following table displays jays consumption of juice and bags of chips. The pr
ID: 1232271 • Letter: T
Question
The following table displays jays consumption of juice and bags of chips. The price of each juice is $2.00 and the price of each bags of chips is $5.00.A. Fill in the missing total utility, marginal utility, and marginal utility/price (MU/Price).
Bottles of juice Consumed
0
1
2
3
4
5
6
Total Utility
0
20
-----
-----
60
64
62
Marginal Utility
-----
-----
18
4
8
-----
-----
MU/Price
-----
-----
-----
-----
-----
-----
-----
Number of bags chips Consumed
Total Utility
0
2
4
6
8
10
12
Total Utility
0
50
-----
120
140
150
-----
Marginal Utility
-----
-----
20
15
-----
5
0
MU/Price
-----
-----
-----
-----
-----
-----
-----
B.Jay has $28.00 to spend on juice and chips. Determine the number of cans of juice and chips that will be optimal for jay. Explain your reasoning regarding how you chose that consumption point.
Thank you
If some one can get me this quick and good answers i will vote for them i need this quick.
Explanation / Answer
Bottles of Juice Consumed Total Utility Marginal Utility MU/Price 0 0 __0_ __0_ 1 20 _20__ _10__ 2 _38_ 18 _9__ 3 _52__ 14 __7__ 4 60 8 __4__ 5 64 _4__ __2__ 6 62 __-2__ _-1___ Number ofchips Consumed Total Utility Marginal Utility MU/Price 0 0 _0___ __0__ 2 50 _50___ __10___ 4 _100___ 20 __4__ 6 120 15 ___3__ 8 140 _20__ __4____ 10 150 5 ____1___ 12 _150___ 0 __0_____ B. George can buy 28/2=14 juice or 28/5=5.6 chips 2J+5C=28 budget constraint and MU of juice/chips=14/5.6 =2.5 Therefore, for every chips consumer, 2.5 juice are consumed or 1C=2.5J substitute this into our equation 2J+5C=28 2J+5(2.5C)=28 2J+12.5J=28 14.5J=28 J=28/14.5 or 56/29 plug this into equation 2(56/29)+5C=28 112/29+5C=28 5C=700/29 C=35000/29 Hope this helps
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