Question: Question 1 - Nadia has $ 2 0 per week to spend on any combination of pineapples and green tea. The price of a pineapple

Question 1-
Nadia has $20 per week to spend on any combination of pineapples and green tea. The price of a pineapple is $4 and the price of a bottle of green tea is $2. The table below shows Nadia's utility values. Use the table to answer the questions that follow the table.
\table[[\table[[Quantity],[of],[Pineapples]],\table[[Total],[Utility]],\table[[Marginal],[Utility]],\table[[Marginal],[Utility per],[Dollar]],\table[[Quantity],[of Green],[Tea]],\table[[Total],[Utility]],\table[[Marginal],[Utility]],\table[[Marginal],[Utility per],[Dollar]]],[1,32,-,-,1,28,-,-],[2,52,20,5,2,46,18,9],[3,64,12,3,3,54,8,4],[4,68,4,1,4,60,6,3],[5,70,2,0.5,5,64,4,2],[6,71,1,0.25,6,66,2,1],[7,71,0,0,7,67,1,0.5]]
a. Complete the table by filling in the blank spaces.
b. Suppose Nadia purchases 4 pineapples and 2 bottles of green tea. Is she consuming the optimal consumption bundle? If so, explain why. If not, what combination should he buy and why?
Question 1 - Nadia has $ 2 0 per week to spend on

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!