Explain what happens to the total utility received

Reference no: EM13242550

Amy is shopping at a dollar store. She is currently buying 5 bracelets that cost $1 each and 4 sodas that cost $1 each. The table below indicates the marginal utility she obtains when she purchases this combination.

Quantity Marginal Utility
Bracelets 5 30
Sodas 4 40
a. Is this consumer maximizing his/her utility?
b. If not, should she consume more bracelets or more sodas? Explain.
c. Answer the following assuming that one more bracelet is purchased and one less soda is consumed:
1. What happens to the Marginal Utility of bracelets and the Marginal Utility of soda?
2. What happens to the Total Utility received?
3. What happens to the total dollars spent?

Reference no: EM13242550

Questions Cloud

What characteristics and other factors contributed to crises : For decades, these countries had maintained a stable currency and enhanced their globalization efforts. Following this prosperous period, Thailand, South Korea, Indonesia, Malaysia, and the Philippines dropped to net outflows of U.S. $12.1 billion..

Accurately characterizes the state of the republican party : Which of the following statements most accurately characterizes the state of the Republican Party in Congress at the beginning of the Taft administration?

How much heat is transferred from the water : A bottle containing 2 kg of water at a temperature of 15°C is placed in a refrigerator where the temperature is kept at 5°C. How much heat is transferred from the water to cool it to 5°C

How did the working class benefit from the neal deal : How did the working class benefit from the Neal Deal? What New Deal legislation do you think was most important in effecting this change? What did your choice of important legislation do?

Explain what happens to the total utility received : Amy is shopping at a dollar store. She is currently buying 5 bracelets that cost $1 each and 4 sodas that cost $1 each. The table below indicates the marginal utility she obtains when she purchases this combination.

Define the similarity in physical and chemical properties : What pair of elements would you expect to exhibit the greatest similarity in physical and chemical properties. WHY.

What is the approximate temperature : On a nice winter day at the South Pole, the temperature rises to ?63°F. What is the approximate temperature in degrees Celsius

When theodore roosevelt attacked trusts for abuse of power : When Theodore Roosevelt attacked trusts for abuse of power, he. Which of the following statement most accurately characterizes the development of professional, commercial radio during the 1920's?

Abstracted income statement information for the two companie : Marriott International, Inc., and Wyndham Worldwide Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year

User Account

All Pages