The table below gives Sam's marginal utility schedule for bananas and apples. Sam's fruit budget is...
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The table below gives Sam's marginal utility schedule for bananas and apples. Sam's fruit budget is $10. Apples Marginal utility per dollar Quantity (pounds) 1 2 3 4 5 6 Bananas Marginal utility Quantity per dollar (pounds) 1 2 3. 4 5 6 30 24 18. 12 6 0 40 34 24 16 8 0 a) If bananas cost $1 per pound and apples cost $2 per bag, what is Sam's marginal utility per dollar for all quantities of both goods? b) What is the utility maximizing combination of bananas and apples for Sam? c) If the price of bananas increases to $2 per pound, how does Sam's marginal utility per dollar for bananas change? d) At the banana price of $2 per pound, what is the new utility maximizing combination of bananas and apples for Sam? e) List two points on Sam's demand curve for bananas. The table below gives Sam's marginal utility schedule for bananas and apples. Sam's fruit budget is $10. Apples Marginal utility per dollar Quantity (pounds) 1 2 3 4 5 6 Bananas Marginal utility Quantity per dollar (pounds) 1 2 3. 4 5 6 30 24 18. 12 6 0 40 34 24 16 8 0 a) If bananas cost $1 per pound and apples cost $2 per bag, what is Sam's marginal utility per dollar for all quantities of both goods? b) What is the utility maximizing combination of bananas and apples for Sam? c) If the price of bananas increases to $2 per pound, how does Sam's marginal utility per dollar for bananas change? d) At the banana price of $2 per pound, what is the new utility maximizing combination of bananas and apples for Sam? e) List two points on Sam's demand curve for bananas.
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a To calculate Sams marginal utility per dollar for both goods we divide the marginal utility of eac... View the full answer
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