Kelly spends all of her $24 of weekly income on Girl Scout cookies and doughnuts. The...
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Kelly spends all of her $24 of weekly income on Girl Scout cookies and doughnuts. The table below shows the utility she receives from different combinations of cookies and doughnuts. Each box of cookies she buys is $5, and each doughnut she buys is $1. Total Quantity of cookies (boxes utility from per week) cookies 500 950 1350 1700 2000 2200 1 2 3 4 5 6 Marginal MU per utility of cookies 500 450 400 350 300 200 dollar spent on cookies 100 90 80 70 60 40 Quantity of doughnuts (doughnuts per week) 1 2 3 4 5 6 Total utility Marginal from doughnuts doughnuts utility from 200 375 525 595 620 628 200 175 150 70 25 8 MU per dollar spent on doughnuts 200 175 150 70 25 8 At a price of $5, Kelly can maximize her utility by buying 4 boxes of cookies. At a price of $10, Kelly can maximize her utility by buying 2 boxes of cookies. Draw the demand curve for boxes of cookies based on the quantity of cookies demanded at the prices of $5 per box and $10 per box. To add points to the grid provided, click for each value in the table. To draw the line, click Price 20 16- 12- 0 and then click the desired location in the grid to place a point and select two points on the line. 10 Quantity of Cookies Demanded (boxes) Kelly spends all of her $24 of weekly income on Girl Scout cookies and doughnuts. The table below shows the utility she receives from different combinations of cookies and doughnuts. Each box of cookies she buys is $5, and each doughnut she buys is $1. Total Quantity of cookies (boxes utility from per week) cookies 500 950 1350 1700 2000 2200 1 2 3 4 5 6 Marginal MU per utility of cookies 500 450 400 350 300 200 dollar spent on cookies 100 90 80 70 60 40 Quantity of doughnuts (doughnuts per week) 1 2 3 4 5 6 Total utility Marginal from doughnuts doughnuts utility from 200 375 525 595 620 628 200 175 150 70 25 8 MU per dollar spent on doughnuts 200 175 150 70 25 8 At a price of $5, Kelly can maximize her utility by buying 4 boxes of cookies. At a price of $10, Kelly can maximize her utility by buying 2 boxes of cookies. Draw the demand curve for boxes of cookies based on the quantity of cookies demanded at the prices of $5 per box and $10 per box. To add points to the grid provided, click for each value in the table. To draw the line, click Price 20 16- 12- 0 and then click the desired location in the grid to place a point and select two points on the line. 10 Quantity of Cookies Demanded (boxes)
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Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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