Question
1. Jane has been working all day, missing both her breakfast and lunch. Finally able to leave work, after being required to work a couple
1. Jane has been working all day, missing both her breakfast and lunch. Finally able to leave work, after being required to work a couple of overtime hours, she is starving. Jane has $20 in her pocket, so she stops at a local fast food restaurant and orders a grilled chicken sandwich and an order of fries. As she sits down to eat them, a university student approaches her and tells her that she is doing a research project for her microeconomics course and would like to ask Jane a few quick questions. Jane agrees, and the student asks what "score" (marginal utility) from 1 to 100 would she give as her satisfaction level with the first sandwich and the first fries? After eating that order, Jane is still hungry and orders a second chicken sandwich and another order of fries. Again, the student asks Jane to give her new scores. Since Jane has not eaten all day, she is hungry enough to order a third round of food and again gives "scores" to the inquisitive student.
Below is the university student's completed experiment tally sheet of Jane's marginal utility "scores" and the calculation of her marginal utility per dollar, given that each sandwich costs $4.00, and each order of fries costs $2.00. Her budget is $20.
The student filled in the shaded cells based on Jane's responses, then computed the values in the remaining cells. Using this information, answer the following questions.
Student's completed experiment tally sheet. Available budget is $20.
mu mu (score) Price (score) Price Money Total Total from 1 to of each Money Order from 1 of each spent Money Budget Order of 100 $4.00 spent on of to 100 $2.00 on Spent Remaining Chicken mu mu/$ Chicken Fries mu mu/$ Fries Sandwich Sandwich 1 st 100 25 $4.00 1st 50 25 $2.00 $6.00 $14.00 2nd 72 18 $4.00 2nd 20 10 $2.00 $12.00 $8.00 3rd 60 15 $4.00 3rd 6 3 $2.00 $18.00 $2.00 4th 4th Utility 232 Utility 76\fMonth Monthly barrels of gosurn berries Price per Monthly total revenue demanded barrel (Enter Totals Below) June 700 $70 (Enter monthly total revenue here) July 600 $84 (Enter monthly total revenue here) Change in monthly total revenue: (Enter change in monthly total revenue here.)Step by Step Solution
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