Question 4 (Total marks = 30) For this problem, assume that Joey has $80 to spend on books and movies each month and that both goods must be purchased whole (no fractional units). Movies cost $8 each, and books cost $20 each. Joey's preferences for movies and books are summarized by the following information: No. per Movies Movies Movies | No. per Books Books Books Month 11] 80 100 110 116 121 123 ~ | |W B W | a. Fill in the figures for marginal utility and marginal utility per dollar for both movies and books. (8 marks) b. Are these preferences consistent with the law of diminishing marginal utility? Explain your answer. (4 marks) c. Given the budget of $80, what quantity of books and what quantity of movies will maximize Joye's level of satisfaction(i.e. total utility)? Explain your answer. (6 marks) d. Now suppose the price of books falls to $10. Which of the columns in the table need to be recalculated? Do the required recalculations. (3 marks) e. After the price changes with the same budget of $80, how many movies and how many books will Joey purchase to maximize the total utility? (4 marks) f. If you found that a decrease in the price of books caused Joey to buy more books. Can you use an economic concept with relevant diagram to explain this situation? (5 marks) ~the end~