Ly Lab 6 (Question 1) ~ Lyryx Learning Inc - Google Chrome laecon1.lyryx.com/student-servlets/LabServlet?ccid=3692 advancing learning Print Preferences Help Lab 6 (Question 1) Name: Hang Ma Date: 2020-06-28 Question 1 [18 points] Radu loves to go on Ski trips. Going on a Ski trip costs Radu a total of $47 per trip. Radu also loves to go to Classical concerts. Going to a concert costs Radu a total of $30 per concert. Radu must allocate his monthly entertainment budget carefully, and has evaluated ho much satisfaction, measured in utils, he obtains from each Ski trip and each Classical concert visit. Radu's total utility from each activity is independent of the amount of the other activity he engages in. Radu has an entertainment budget of $308. Total Utils Total Utils Marginal Utils Marginal Utils Marginal Marginal Visit Number (Ski) (Classical) (Ski) (Classical) Utils/$ (Ski) Utils/$ (Classical) OUTAWN 118 88 118 88 2.51 2.93 222 192 104 74 2.21 2.47 314 254 92 62 1.96 2.07 396 306 82 52 1.74 1.74 470 350 74 44 1.57 1.47 538 388 68 38 1.45 1.27 602 422 64 34 1.36 1.13 Suppose that the price of a Classical concert falls to $26 from $30. The income budget remains at $308. Visits past 7 will not give any extra utility. a) Compute Radu's original equilibrium (before the price change). Original number of Ski trips = Original number of Classical concerts = 0 b) Fill out the table for the new MU/P for Classical 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 Classical Utils per S JOUAWN 0 O 0 c) Compute Radu's new equilibrium (after the price change). New number of Ski trips = New number of Classical concerts = 0 ~ 951X 7 / ENG 4:38 PM 2020-06-28