PART # 1

Respond to the following statement: Using utility theory, explain how some restaurants are able to maintain an all-you-can-eat policy and still remain protable. Is this possible? Please use content from the text and outside sources to explain and support your answer. Remember to cite your outside sources. 1. The table belowr shows the Total Utility Mary enjoys from the combined consumption of Pens, Crayola, and Paper. Mary's budget for these three products is $42.00. The prices of Pens, Crayola, and Paper are $1, $3, and 58. 27 27 108 a. Please fill in the missing cells in the table. b. Compute the utilitymaximizing bundle of Pens, Crayola, and Paper? 1:. What is Mary? s overall maximizing total utility? 2. Using a welllabelled diagram explain the DiamondWater paradox. In your answer be sure to explain why the DiamondWater paradox is a special case of the Paradox of Value? 3. Using an appropriate graph show and explain with the help of consumer choice theory why second homes are usually less expensive than first or primary homes? 4. Using consumer theory explain why you are a creature of variety