can you provide greater clarity on question 1 a-d from my original answer

1. Rony is choosing between two snacks, chips and sour gums, and her marginal utility from each is as shown below.

Units of Chips	MUc	Units of Sour Gums	MUs
1	10	1	8
2	8	2	7
3	6	3	6
4	4	4	5
5	3	5	4
6	2	6	3

1. If Rony's income is $9 and the price of chips and sour gums are $2 and $1 respectively, what quantities of each will Rony purchase to maximize utility?(4 marks,show all your work)

Marginal Utility per $ spent:

Chips = MUc / Pc = 10 / 2 = 5

Sour Gums = MUs / Ps = 8 / 1 = 8

Units of chips = Income / Pc = $9 / $2 = 4.50 units

Units of sour gums = Income / Ps = $9 / $1 = 9 units

To maximize utility, Rony will purchase 4 units of chips and 9 units of sour gums.

1. What total utility will Rony realize?(1 mark)

Total Utility = Sum of the Marginal Utilities of the purchased quantities of both snacks

Utility of Chips = 10 + 8 + 6 + 4 = 28

Utility of Sour Gums= 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 + 0 = 36

Total Utility = 64

1. Assume that other things remain unchanged, the price of chips falls to $1. What quantities of chips and sour gums will she now purchase?(2 marks)

Unit of Chips = Income / Pc = $9 / $1 = 9 units

Units of Sour Gums = Income / Ps = $9 / $1 = 9 units

Rony will purchase 9 units of both chips and sour gums.

1. When the price of chips is $1, what is Rony's total utility?(1 mark)

Utility of Chips = 10 + 8 + 6 + 4 + 3 + 2 + 1 + 0 + 0 = 34

Utility of Sour Gums = 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 + 0 = 36

Total Utility = 70

Tutor help answer

A.

Units of Chips	MUc	MU/P	Units of Sour Gums	MUs	MU/P
1	10	5	1	8	8
2	8	4	2	7	7
3	6	3	3	6	6
4	4	2	4	5	5
5	3	1.5	5	4	4
6	2	1	6	3	3

Chips = MUc / Pc = 10 / 2 = 5

Sour Gums = MUs / Ps = 5/ 1 =5

Cost of Bundle: (1 x 2$) + (4x1$) =2$+4$ = 6$

To maximize utility, Rony will purchase 1 unit of chips and 4 units of sour gums since it gives the same marginal utility per dollar of 5. Also, the cost of the utility maximizing bundle is still within Rony's budget.

B. Total Utility for 1 unit of chips and 4 units of sour gums:

Utility of Chip= 10

Utility of Sour Gums= 8 + 7 + 6 + 5 = 26

Total Utility = 36

C.

Chips = MUc / Pc = 6 / 1 = 6

Sour Gums = MUs / Ps = 6/ 1 =6

Cost of Bundle: (3 x 1$) + (3x1$) =3$+3$ = 6$

To maximize utility, Rony will purchase 3 units of chips and 3 units of sour gums since it gives the same marginal utility per dollar of 6. Also, the cost of the utility maximizing bundle is still within Rony's budget.

D. When the price of chips is $1, what is Rony's total utility?

Utility of Chip= 10 + 8 +6= 24

Utility of Sour Gums= 8 + 7 + 6 = 21

Total Utility = 45