150 Problem Set #5. The table below shows Jeremy's total utility (TU) from different quantities of the two items. Assume that the price of both Good A and B are equal to $3 initially. [xx points) Good A: Good B: Price $3 Price = $3 $6 Choice # TU MU MU/PA Cholce # TU MU MU/P MU/P 0 0 N/A N/A 0 0 N/A N/A N/A 1st 50 50 144 75 75 2nd 89 39 2nd 117 42 14 3rd 122 33 3d 153 36 4th 28 4th 186 33 5th 174 24 SI 210 24 6th 195 21 6th 230 20 7th 213 18 7th 245 15 Sth 228 15 gth 257 12 **(Recommend that fill all blank cells in the above table with numbers first.) Extra 2.5 points if you correctly fill all blanks in the above table! 54. Total utility (TUA) Jeremy obtains by consuming the first 2 units of Good A equals 89. 55. What is Jeremy's marginal utility per dollar (MU./P.) when he consumes the 2nd unit of Good B? Type a positive number. Leave one decimal if needed.) 14 56. If Jeremy has a budget of $30 to buy Goods A and B, how many units of Goods A and B will he buy to maximize his utility? Qu=4 06(Note: Po = P = $3) 57. How much total utility will Jeremy experience by buying the utility-maximizing combination in 056? Type an integer (whole number) TU = TUA + TU, -2754 58. Suppose the price of Good B increases to $6. (His budget is still $30.) How many units of A and B will he buy to maximize his utility now? [059) Q = 3 60. Based on your answers for 056 and 058 above, what type of relationship is between Good A and Good B? A) substitute B) complement C) no relation 61. Plot 2 points obtained from the above questions above; one with P. = $3 (Ref: 056), the other with P - $6 (Ref: 058) Draw a line connecting these 2 points. This drawing represents a Jeremy's curve for Good B. (You may see a template for this drawing next page) A) Utility B) Indifference C) PPF 1 D) Demand E) Supply 62. Suppose Jeremy's budget decreases from $30 to $21, but prices have not changed from the initial condition (l.e., PA = P - $3). Then he should buy_3units of Good A and 4 units of Good 8 to maximize his utility, (Type a whole number between 0 and 8.) Q=4 63. Based on your answers for 056 and 262, you can conclude that Good A is aln) (normal/inferior) good and Good B is a(n) {normal/inferior) good. Note: **Select either "normal" or "Inferior" for each of 2 pairs of brackets). Jeremy's _curve for Good B (Refer to 061 on Page 1.) Extra 1.5 points if you draw this curve correctly! $6 Price per unit $3 0 1 2 Quantity of Good B