Answer the third Question which is Number 3

CHAPTER 19 ECON 101 Inclass Assignment 1. Fill in the blanks in the following table. The price of a cup of coffee is $2. Cups of Coffee TU MU MU/P 0 0 15 1 2 27 3 37 8 4 6 5 5 6 LE 55 7 8 -5 2. The table below presents Kent's marginal utility per dollar for books and pizzas. Books cost $16 each and pizzas cost $8 each. Books 1 2 3 4 S 6 6 7 MU/P 30 26 24.5 20 17.5 10 5.5 Pizzas 1 2 3 4 S 6 7 MU/P 25 24.5 20 16 11 8 2 a. How many books and pizzas will Kent purchase if he has $88 to spend? b. How much utility will Kent receive from his purchases in a? c. The price of books rises to $20 a book. How do your answers to a and h change? 3. State whether the consumer in each of the following situations is maximizing utility. If she is not, state what adjustments she should make to maximize utility. a. Selma consumes 2 sandwiches and 3 Coca-colas. The last sandwich gives Selma 25 units of utility and the last Coca-Cola gives her 5 units of utility. Sandwiches cost $5 apiece and Coca-colas cost $1 apiece. b. Kristin cals 2 Twix bars and 1 bag of M&Ms. The last Twix har gives Kristin 10 units of utility and the last bag of M&Ms gives her 30 units of utility. Twix bars cost $0.50 apiece and one bag of M&Ms costs $0.75. c. Jackie reads another chapter in her novel that gives her 400 units of utility at a cost of 30 minutes of her time and another chapter in her economics text that gives her 1,500 units of utility at a cost of l ' hours of her time