Ly Lab 6 (Question 1) ~ Lyryx Learning Inc - Google Chrome laecon1.lyryx.com/student-servlets/LabServlet?ccid=3692 Question 1 [18 points] John loves to go on Camping trips. Going on a Camping trip costs John a total of $51 per trip. John also loves to go to Bluegrass concerts. Going to a concert costs John a total of $21 per concert. John must allocate his monthly entertainment budget carefully, and has evaluated how much satisfaction, measured in utils, he obtains from each Camping trip and each Bluegrass concert visit. John's total utility from each activity is independent of the amount of the other activity he engages in. John has an entertainment budget of $339 Visit Number Total Utils Total Utils Marginal Utils Marginal Utils Marginal Marginal (Camping) (Bluegrass) (Camping) (Bluegrass) Utils/S Utils/S (Camping) (Bluegrass) 140 12 140 72 2.75 3.43 VOUAWN 264 196 124 58 2.43 2.76 374 242 110 46 2.16 2.19 472 278 98 36 1.92 1.73 560 306 88 28 1.73 1.33 640 328 80 22 1.57 1.05 714 346 74 18 1.45 0.86 Suppose that the price of a Bluegrass concert increases to $28 from $21. The income budget remains at $339. Visits past 7 will not give any extra utility. a) Compute John's original equilibrium (before the price change). Original number of Camping trips = Original number of Bluegrass concerts = b) Fill out the table for the new MU/P for Bluegrass concerts (after the price change). Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. Marginal Visit Number Bluegrass Utils per S VOUAWN 0 0 O c) Compute John's new equilibrium (after the price change). New number of Camping trips = New number of Bluegrass concerts = 5 Official Time: 16:09:22 SUBMIT AND MARK SAVE AND CLOSE 9 6 4:09 PM 2020-06-28