Demand and Marginal Utility

Pizza PiesCompact DisksMovies

Total Marginal MuTotalMargMU/Total Marginal MU/

Qua. UtilityUtilityPQuant. Utility Util.P Quant. Utility Utility_P___

190906.016060 4.0130304.0

2130402.6729030 2.0245152.0

316030 2.03105151.035050.67

4180201.33 4115100.67 453.5_3.50.47

518550.33 512050.33 555_1.50.2

6150-35 -2.33 612220.13656_10.13

The above chart provides C. Chan's hypothetical total utility schedule for three goodspizza pies, compact disks, and movies.Assume that the price of a pizza is $15, the price of a compact disk is $15, and the price of a movie is $7.50.How many units of each good will C. Chan consume if he spends all of his income of$85 a month on these three goods.

How your answers change if the price of movies is $10?$5?

Plot the demand curve for movies.

What is the price elasticity of demand for movies if the price rises from $5.00 to $10.00?

Use the mean or arc elasiticity formula for the above question.