Question: Use the utility table from class. Find the optimal bundle when the price of a Burger is $12, the price of Movie is $12,

Use the utility table from class. Find the optimal bundle when the price of a Burger is $12, the price of

Movies 1 2 3 4 5 6 7 8 Utility 84 144 192 216 234 246 252 256 Utility Burgers 1 2 3 4 5 6 7 8 Utility 96 180

Use the utility table from class. Find the optimal bundle when the price of a Burger is $12, the price of Movie is $12, and there is $72 to allocate. Find the optimal bundle when the price of Burgers changes to $6. Sketch the optimal bundles on a consumption diagram and graphically derive, and find the equation for, the demand curve. Find the optimal bundle when the income increases to $96. [Note: P-6 and Pv=12.] Movies 1 2 3 4 5 6 7 8 Utility 84 144 192 216 234 246 252 256 Utility Burgers 1 2 3 4 5 6 7 8 Utility 96 180 252 312 348 372 390 402

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To find the optimal bundle of goods burgers and movies in this case we need to maximize the total utility given the budget constraint and the prices of the goods The budget is 72 the price of a burger ... View full answer

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