B. Suppose the following table shows Tina's total utility from her consumption of different quantities of...
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B. Suppose the following table shows Tina's total utility from her consumption of different quantities of cookies and latte. Quantity of cookies MU of Quantity of latte TU from MU of TU from cookies cookies latte latte 1 20 1 30 38 45 54 57 4 68 66 80 72 6 90 96 6. 77 7. 78 78 8 100 (1) Calculate Tina's marginal utilities from cookies and latte and write them in the table. (i) Suppose Tina's budget is $18 and the prices $3 for latte and $2 for cookies. What quantities of cookies and latte should Tina choose to maximize her utility? (ii) How much does she spend on each good at this equilibrium? (iv) Suppose Tina got a big discount on Latte. The new price for latte is SI while the price of cookies and Tina's budget remained the same at $2 and S18, respectively. What is the new utility maximizing quantities of cookies and latte that Tina would choose? C. The following shows Tina's indifference curves for consumption of cookies and latte, and the table that follows it shows the marginal rate of substitution (MRS) between cookies and latte at different points on the indifference curve. Note that MRS measures the slope of the indifference curve at a particular point on the indifference curve. Quantity Quantity point on IC of latte of cookies MRS a 8 2 4 3 2 1. 1. Latte IC cookies (i) If price of latte is $2 and price of cookies is S8 and Tina's budget is $34, what is her utility maximizing combination of latte and cookies? B. Suppose the following table shows Tina's total utility from her consumption of different quantities of cookies and latte. Quantity of cookies MU of Quantity of latte TU from MU of TU from cookies cookies latte latte 1 20 1 30 38 45 54 57 4 68 66 80 72 6 90 96 6. 77 7. 78 78 8 100 (1) Calculate Tina's marginal utilities from cookies and latte and write them in the table. (i) Suppose Tina's budget is $18 and the prices $3 for latte and $2 for cookies. What quantities of cookies and latte should Tina choose to maximize her utility? (ii) How much does she spend on each good at this equilibrium? (iv) Suppose Tina got a big discount on Latte. The new price for latte is SI while the price of cookies and Tina's budget remained the same at $2 and S18, respectively. What is the new utility maximizing quantities of cookies and latte that Tina would choose? C. The following shows Tina's indifference curves for consumption of cookies and latte, and the table that follows it shows the marginal rate of substitution (MRS) between cookies and latte at different points on the indifference curve. Note that MRS measures the slope of the indifference curve at a particular point on the indifference curve. Quantity Quantity point on IC of latte of cookies MRS a 8 2 4 3 2 1. 1. Latte IC cookies (i) If price of latte is $2 and price of cookies is S8 and Tina's budget is $34, what is her utility maximizing combination of latte and cookies? B. Suppose the following table shows Tina's total utility from her consumption of different quantities of cookies and latte. Quantity of cookies MU of Quantity of latte TU from MU of TU from cookies cookies latte latte 1 20 1 30 38 45 54 57 4 68 66 80 72 6 90 96 6. 77 7. 78 78 8 100 (1) Calculate Tina's marginal utilities from cookies and latte and write them in the table. (i) Suppose Tina's budget is $18 and the prices $3 for latte and $2 for cookies. What quantities of cookies and latte should Tina choose to maximize her utility? (ii) How much does she spend on each good at this equilibrium? (iv) Suppose Tina got a big discount on Latte. The new price for latte is SI while the price of cookies and Tina's budget remained the same at $2 and S18, respectively. What is the new utility maximizing quantities of cookies and latte that Tina would choose? C. The following shows Tina's indifference curves for consumption of cookies and latte, and the table that follows it shows the marginal rate of substitution (MRS) between cookies and latte at different points on the indifference curve. Note that MRS measures the slope of the indifference curve at a particular point on the indifference curve. Quantity Quantity point on IC of latte of cookies MRS a 8 2 4 3 2 1. 1. Latte IC cookies (i) If price of latte is $2 and price of cookies is S8 and Tina's budget is $34, what is her utility maximizing combination of latte and cookies? B. Suppose the following table shows Tina's total utility from her consumption of different quantities of cookies and latte. Quantity of cookies MU of Quantity of latte TU from MU of TU from cookies cookies latte latte 1 20 1 30 38 45 54 57 4 68 66 80 72 6 90 96 6. 77 7. 78 78 8 100 (1) Calculate Tina's marginal utilities from cookies and latte and write them in the table. (i) Suppose Tina's budget is $18 and the prices $3 for latte and $2 for cookies. What quantities of cookies and latte should Tina choose to maximize her utility? (ii) How much does she spend on each good at this equilibrium? (iv) Suppose Tina got a big discount on Latte. The new price for latte is SI while the price of cookies and Tina's budget remained the same at $2 and S18, respectively. What is the new utility maximizing quantities of cookies and latte that Tina would choose? C. The following shows Tina's indifference curves for consumption of cookies and latte, and the table that follows it shows the marginal rate of substitution (MRS) between cookies and latte at different points on the indifference curve. Note that MRS measures the slope of the indifference curve at a particular point on the indifference curve. Quantity Quantity point on IC of latte of cookies MRS a 8 2 4 3 2 1. 1. Latte IC cookies (i) If price of latte is $2 and price of cookies is S8 and Tina's budget is $34, what is her utility maximizing combination of latte and cookies?
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