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Sam purchase per month

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Reference no: EM131646793

Sam is willing to pay $12 per month for 1 green egg per month, $10, for the 2nd, $8 for the 3rd, etc. The market price of green eggs is $8. He is willing to pay $20 per month for 1 slice of ham per month, $16 for a 2nd, $12 for a 3rd, etc. The market price of ham slices is $12. (For this problem, assume Sam can only buy green eggs and ham in whole units; i.e. use the discreet values given, do not graph as a linear demand curve).

a. How many green eggs and ham slices does Sam purchase per month, and how much does he spend in total on each?

b. Which good provides Sam with the greatest net benefits? Would your answer be the same if green eggs cost $6?

c. How much would Sam be willing to pay to be able to purchase ham slices at $8 rather than $12?

Reference no: EM131646793

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