1. Jinx likes to go hear Live Music (LM) every week, and likes to go Bowling (B) every week. Here are Jinx's marginal utilities for these two activities:

Live Music Bowling

1st LM: 80 utils 1st B: 40 utils

2nd LM: 60 utils 2nd B: 35 utils

3rd LM 30 utils 3rd B: 30 utils

The price of Live Music is $20, and the price of Bowling is $10.

A. If Jinx has $70 to spend on these activities per week, how many of each type does Jinx buy in order to maximize utility?

B. What is the condition that must be true for the last dollars spent on each item in order to be sure that Consumer Equilibrium has been reached?

C. What is the marginal utility per dollar for the last dollars spent on these items in this example?

2. Uncle Fred is retired. His favorite thing to do is to go fishing. Why doesn't Uncle Fred Fish all day every day?