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Consumer Choice: You have a fixed budget and you have two amusement park rides to choose from,--thundering roller coaster(adrenaline pumping) and rocket ship (not so

Consumer Choice: You have a fixed budget and you have two amusement park rides to choose from,--thundering roller coaster(adrenaline pumping) and rocket ship (not so exciting)

Number of Times Riding Total Utility Roller Coast(Unit-utils points)

Marginal Utility Roller Coast

(Fill in)

MU/Price Riding

Roller Coast(Price=$4)

(Fill in)

Total Utility

Rocket(utils)

Marginal Utility

(Fill in)

MU/Price

Rocket

(Price=$2)

Fill in)

1 120 30
2 200 50
3 240 66
4 272 74
5 288 78
6 292 80

Assumptions:

You have a fixed budget of $16

The cost of riding roller coast is $4(imputation for wait time)

The cost of riding the rocket ships is $2(imputation for wait time)

Questions:

Find the optimal consumption point (how many times would you ride the roller coast, how many times would you ride the rocket ship)

What is the rule you used to determine the optimal consumer choice?

What is the total utility associated with your optimal consumer choice?

How does this compare to other possible combinations?

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