Table 1 Quantity of Pita Wraps --Total Utility-- Quantity of Bubble Tea-- Total
ID: 1237419 • Letter: T
Question
Table 1Quantity of Pita Wraps --Total Utility-- Quantity of Bubble Tea-- Total Utility
1-- 60 -- 1-- 36
2-- 108-- 2-- 66
3 --150 --3-- 90
4-- 186-- 4 --111
5-- 216-- 5-- 129
6-- 216 --6 --144
7-- 217 --7-- 145
Keegan has $30 to spend on Pita Wraps
and Bubble Tea. The price of a Pita Wrap
is $6 and the price of a glass of Bubble
Tea is $3. Table 1 shows his total utility
from different quantities of the two items.
1.) Calculate the marginal utility per dollar spent on the 3rd pita wrap and the 3rd
bubble tea.
A) MUPita/PPita=6, MUBuble/PBubble=7 C) MUPita/PPita=7, MUBuble/PBubble=8
B) MUPita/PPita=25, MUBuble/PBubble=30 D) MUPita/PPita=6, MUBuble/PBubble=6
2.) What is Keegan's optimal consumption bundle given that he has $30 to spend and the price of a Pita
Wrap is $6 and the price of a glass of Bubble Tea is $3?
A) 3 pita wraps and 3 bubble teas C) 4 pita wraps and 2 bubble teas
B) 3 pita wraps and 4 bubble teas D) 5 pita wraps and 0 bubble teas
3.) What is Keegan's optimal consumption bundle when the price of the Bubble Tea increases to $6, and
everything else remains the same, i.e., Keegan
Explanation / Answer
B C D A D C
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