11 / 11 90% + 2 Tickets to Merchants Tickets to Picture Show Walk Merchants Exchange Quality Total Utility Quality Total Utility O O O 25 1 21 N 45 39 60 54 65 K A w 66 60 72 Assume Merchants Walk tickets are $5 and Picture Show tickets are $3, and the consumer spends their entire income of $22 on these two items. a) Using the concept of marginal utility per dollar spent, identify the combination of Merchants Walk tickets and Picture Show tickets the consumer will purchase. Explain your reasoning. b) At what point does the law of diminishing marginal utility set in with regard to Merchants Walk tickets? c) Assume that the price of tickets at the Picture Show remain the same, but that the price of tickets for Merchants Walk doubles to $10. If your income increases to $35, identify each of the following: i) The combination of Merchants Walk and Picture Show tickets the consumer will now purchase. ii) The marginal utility the consumer will receive from consuming the last Picture Show ticket purchased in part i). d) Draw a budget line for Tickets to Mechant's Walk and Tickets to Picture Show at Merchants Exchange based on the conditions from (c). OLG