Jan loves eating toast and drinking cans of pop. The table below shows his marginal utility...

  

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Jan loves eating toast and drinking cans of pop. The table below shows his marginal utility measured in terms of dollars, that is, in $MU. PIECES OF TOAST SMU 3.90 3.40 2.90 2.10 1.18 -0.30 Pieces 1 2 3 4 5 6 Cans 1 2 3 4 5 6 Cans of pop: POP SMU 1.80 1.70 1.30 0.90 0.50 -0.10 Suppose that Jan has a budget of $7 and the price of both the toast and the pop is $1.00. a) How many of each item will Jan buy to maximize his total utility? Pieces of toast b) How much $ total utility will he derive? Round your answer to 2 decimal places. Total utility of S c) How much total consumer surplus will he obtain from each item? Round your answers to 2 decimal places. Toast: $ Pop: $ Now, suppose that Jan moves back to his parents' home, where he considers eating to be a free activity. d. How much of each item will he now consume? Pieces of toast Cans of pop: e. How much total consumer surplus will he now obtain from each item? Round your answers to 2 decimal places Toast S Pop: $ Jan loves eating toast and drinking cans of pop. The table below shows his marginal utility measured in terms of dollars, that is, in $MU. PIECES OF TOAST SMU 3.90 3.40 2.90 2.10 1.18 -0.30 Pieces 1 2 3 4 5 6 Cans 1 2 3 4 5 6 Cans of pop: POP SMU 1.80 1.70 1.30 0.90 0.50 -0.10 Suppose that Jan has a budget of $7 and the price of both the toast and the pop is $1.00. a) How many of each item will Jan buy to maximize his total utility? Pieces of toast b) How much $ total utility will he derive? Round your answer to 2 decimal places. Total utility of S c) How much total consumer surplus will he obtain from each item? Round your answers to 2 decimal places. Toast: $ Pop: $ Now, suppose that Jan moves back to his parents' home, where he considers eating to be a free activity. d. How much of each item will he now consume? Pieces of toast Cans of pop: e. How much total consumer surplus will he now obtain from each item? Round your answers to 2 decimal places Toast S Pop: $

Answer rating: 100% (QA)

Lets calculate the marginal utility per dollar for each option Pieces of Toast Marginal Utility per Dollar for Toast Marginal Utility of Toast Price of Toast SMU Toast 100 Marginal Utility per Dollar ... View the full answer