If Ali buys 4 smoothies a week and sees 3 movies, does he spend all $30? What
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If Ali buys 4 smoothies a week and sees 3 movies, does he spend all $30? What is his utility from smoothies and his utility from movies? Does he maximize his utility? If not, which good must he buy more of?
The table shows the marginal utility that Ali gets from smoothies and movies. Ali has $30 a week to spend. The price of a movie ticket is $6, and the price of a smoothie is $3.
Transcribed Image Text:
Quantity (per day) - 2 3 4 5 6 Marginal utility from movies smoothies 7 6 5 4 3 2 30 24 18 12 6 0
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If Ali buys 4 smoothies and sees 3 movies he spends 12 on smoothies and 18 on movi...View the full answer
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