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Carlos has $ 40.00 to spend a week on lunches and glasses of wine. The price of each lunch is $ 8.00 and the price

Carlos has $ 40.00 to spend a week on lunches and glasses of wine. The price of each lunch is $ 8.00 and the price of each glass of wine is $ 4.00.

The following table presents Carlos's total utility related to lunches and glasses of wine.

Amount per week Utility per lunch Amount per week Utility per glass of wine

0 0 0 0

1 65 1 55

2 105 2 103

3 137 3 139

4 165 4 163

5 191 5 185

6 215 6 205

7 237 7 218

8 257 8 228

9 274 9 235

10 290 10 240

a. Identify the marginal utility and marginal utility per dollar when Carlos buys 5 lunches a week.

b. Identify the marginal utility and marginal utility per dollar when Carlos buys 7 glasses of wine a week.

c. Identify the quantities of lunches and glasses of wine that Carlos should be able to buy with his $ 40.00 and what his maximum total profit would be that he achieves per week.

d. If the price of each lunch is $ 4.00 and the price of each glass of wine is $ 4.00, identify the quantities of lunches and glasses of wine that Carlos should be able to buy with his $ 40.00 and how much would be his maximum total profit that he achieves per week .

e. Name two points on Carlos' demand curve for lunches.

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