Essay
Ice cream Romance novels
-The table above shows Danielle's utility from ice cream and romance novels.
a) What is Danielle's marginal utility from the 4th novel?
b) The price of ice cream is $5 per gallon and a novel is $10. If Danielle's budget for these two goods is $50 and she buys 2 gallons of ice cream, how many novels can she buy? If she buys 6 gallons of ice cream, what is her marginal utility per dollar spent on novels?
c) Which combination of the two goods is better: 4 gallons of ice cream and 3 novels or 6 gallons of ice cream and 2 novels?
Correct Answer:
Verified
a) Danielle's marginal utility from the ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q196: Sergio consumes only beef and snails and
Q197: Suppose Jenny's marginal utility of fish is
Q198: Milkshakes Sodas<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt="Milkshakes Sodas
Q199: Milkshakes Sodas<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8586/.jpg" alt="Milkshakes Sodas
Q200: Shaniq buys only soda and pizza and
Q202: If it costs $12.00 to go to
Q203: Let MU<sub>a</sub> and MU<sub>b</sub> stand for the
Q204: If Tom's total utility from watching one
Q205: Joe consumes pizza and movies. He is
Q206: Gene plays another hour of computer games