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Individual budget constraint for lollipops and gumballs

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Reference no: EM132492615

Assume George has a budget of $6/week to spend on lollipops and gumballs, and that the price of lollipops is $1.

a. If George spends his entire budget on gumballs (and buys no lollipops), he can afford to buy 12. What must the price of gumballs be?

b. Draw this individual's budget constraint for lollipops and gumballs.

c. Assume George gets the utility given in the table below from consuming these two goods. Fill in the rest of the table, calculating the marginal utility as well as the marginal utility per dollar spent for each good.

Reference no: EM132492615

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