Hello, I would like to know the proper formula to use and how do I determine the original and new equilibrium. I would to also like to know how to compute the Marginal Units for question b. It would be nice to have an explanation of the work as well. Thank You very much.

Question 1 [18 points] Bruce loves to go on Ski trips. Going on a Ski trip costs Bruce a total of $48 per trip. Bruce also loves to go to Bluegrass concerts. Going to a concert costs Bruce a total of $22 per concert. Bruce must allocate his monthly entertainment budget carefully, and has evaluated how much satisfaction, measured in utils, he obtains from each Ski trip and each Bluegrass concert visit. Bruce's total utility from each activity is independent of the amount of the other activity he engages in. Bruce has an entertainment budget of $280. Marginal Visit Number Total Utils Total Utils Marginal Utils Marginal Utils Marginal Utils/$ (Ski) (Bluegrass) (Ski ) (Bluegrass) Utils/$ (Ski) (Bluegrass) 132 86 132 86 2.75 3.91 250 204 118 70 2.46 3.18 356 260 106 56 2.21 2.55 452 304 96 44 2 -DUIAWN 540 338 88 34 1.83 1.55 622 364 82 26 1.71 1.18 700 384 78 20 1.63 0.9 Suppose that the price of a Bluegrass concert increases to $29 from $22. The income budget remains at $280. Visits past 7 will not give any extra utility. a) Compute Bruce's original equilibrium (before the price change). Original number of Ski trips = Original number of Bluegrass concerts = 0 b) Fill out the table for the new MU/P for Bluegrass concerts (after the price change). Keep as much precision as possible during your calculations. Your final answer should be accurate to at least two decimal places. Marginal Visit Number Bluegrass Utils per $ 0 0 OUT A WN - 0 0 0 0 c) Compute Bruce's new equilibrium (after the price change) New number of Ski trips = New number of Bluegrass concerts = 0