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Homework Consumer Choice (Ch 20) Deborah enjoys consuming both cheese and fruit. Each pound of cheese costs Pe = $1, and each pound of fruit costs Py = $2. Suppose that Deborah buye: 30 pounds of cheese and 20 pounds of fruit per week. The following graphs show her marginal utility curves for cheese and fruit At her current consumption level, Deborah's marginal utility from consuming the last pound of cheese she bought is MU. = 12 utils per pound, and her marginal utility from consuming the last pound of fruit she bought is MUY = 12 utils per pound. 2 24 24 20 20 16 16 MU OF CHEESE Lieport 12 unds 12 0 10 20 30 CHEESE Pounds per week 0 16 50 20 30 FRUIT (Pounds per week
Homework Consumer Choice (Ch 20) Yes, the marginal utility she receives from her last pound of cheese equals that of her last pound of fruit No; she could buy more cheese and less fruit, not spend any more money, and be better off No; she could buy less cheese and more fruit, not spend any more money, and be better off No; she likes fruit and cheese more than other goods, so she should buy more of both For each of the following combinations of cheese and fruit, calculate the marginal utility per dollar from the last pound of cheese and the last pound of fruit. Then, use the dropdown menus in the last column to indicate which of the combinations satisfy the condition for consumer equilibrium Cheese (Pounds per week) Combination MU Fruit (Pounds per week) A 20 P Consumer Equilibrium? 30 B 40 20 С 30 30 D 50 40 Suppose Deborah has an appetizer budget of $165 per week, which she spends on cheese and fruit. To marom her utility, Deborah will purchase pounds of cheese and pounds of fruit per week Grade R Now Save & Continue Continue without saving a o
Back to Assignment Attempts Keep the Highest/6 3. Finding consumer equilibrium Deborah enjoys consuming both cheese and fruit. Each pound of cheese costs Pe = $1, and each pound of fruit costs Py = $2. Suppose that Deborah buys 30 pounds of cheese and 20 pounds of fruit per week. The following graphs show her marginal utility curves for cheese and fruit. At her current consumption level, Deborah's marginal utility from consuming the last pound of cheese she bought is MUC = 12 utils per pound, and her marginal utility from consuming the last pound of fruit she bought is MUY = 12 utils per pound. 24 24 20 20 tis per bound) 16 is per pound) 16
Consumption level, Deborah's marginally from coming the last pound of these she bought MU - 12 typer and her mara utility from consuming the last pound of fat she bought is My 12 per und X A-Z 2 2 20 B 7 16 NU OF CHEESE (uti per ord MU OF FRUTO 1 ! 10 50 CHEESE Pounds per week 10 50 FRUIT (Pounds per week