Suppose a small cheese pizza costs $10 and a calzone costs $5. You have $40 to spend.

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Suppose a small cheese pizza costs $10 and a calzone costs $5. You have $40 to spend. The marginal utility

(MU) that you derive from each is as follows:image text in transcribed

a. How many of each would you buy?

b. Suppose the price of a calzone rises to $10. How many of each would you buy?

c. Use this to show how the principle of rational choice leads to the law of demand.

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Microeconomics

ISBN: 9781260507140

11th Edition

Authors: David Colander

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