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3. The table below shows the utility (in utils) that a consumer (Arthur) receives from purchasing two goods (cell phones & sunglasses). Cell Phones Sunglasses
3. The table below shows the utility (in utils) that a consumer (Arthur) receives from purchasing two goods (cell phones & sunglasses). Cell Phones Sunglasses Quantity of Cell Phones Utility from Cell Quantity of Sunglasses Utility from Sunglasses Phones (Utils) 0 0 0 0 50 1 40 2 80 2 60 3 100 3 68 4 110 4 75 Assume cell phones cost $100 and a pair of sunglasses cost $50 and that Arthur's budget is $400. a. Calculate Arthur's marginal utility for cell phones & sunglasses at each qty. b. Calculate Arthur's mu per $ for cell phones and sunglasses at each quantity. C. Determine the optimal consumption bundle of cell phone and sunglasses at these prices. d. What is the total amount of utility from the consumption bundle in part c? Assume the price of cell phones falls to $50 and the price of sunglasses remains the same while your budget falls to $350.. e. Determine the new optimal consumption bundle of cell phone and sunglasses at these prices
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