Question 5 a. Michelle has $7 to spend on makeup and clothes and wants to maximize...

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Question 5 a. Michelle has $7 to spend on makeup and clothes and wants to maximize her utility on her purchase. Based on the data in the table, how much makeup and clothes should Michelle purchase to maximize her utility. Show all working [5 marks] Quantity 1 2 3 4 5 6 Makeup= $1 7 8 Total Utility 28 52 72 88 100 108 112 112 Quantity 1 2 3 4 5 Clothes = $0.50 6 7 8 Total Utility 12 22 30 36 40 42 42 40 b. Jamani earns a weekly income of $6000. Suppose he wishes to spend this income on two goods, games and DVDs only. A game costs $200 while a DVD costs $600. Question 5 a. Michelle has $7 to spend on makeup and clothes and wants to maximize her utility on her purchase. Based on the data in the table, how much makeup and clothes should Michelle purchase to maximize her utility. Show all working [5 marks] Quantity 1 2 3 4 5 6 Makeup= $1 7 8 Total Utility 28 52 72 88 100 108 112 112 Quantity 1 2 3 4 5 Clothes = $0.50 6 7 8 Total Utility 12 22 30 36 40 42 42 40 b. Jamani earns a weekly income of $6000. Suppose he wishes to spend this income on two goods, games and DVDs only. A game costs $200 while a DVD costs $600.

Answer rating: 100% (QA)

Answer a To maximize her utility Michelle should allocate her budget between makeup and clothes in s... View the full answer