Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi good afternoon the answer show but I don't know they come up with the answer The answer is 1 and 4. 6.1 Consumption Choices

Hi good afternoon the answer show but I don't know they come up with the answer

The answer is 1 and 4.

image text in transcribed
6.1 Consumption Choices Use marginal utility to understand how consumers make utility maximizing decisions Question Kathryn needs to decide how many shirts and vests to buy for her daughter. She has estimated her daughter's total utility for different quantities of shirts and vests in the table below. Kathryn is willing to spend no more than $18 on her daughter. If the price of a shirt is $6 and the price of a vest is $3, how many shirts and vests should Kathryn buy for her daughter in order to maximize her daughter's total utility? Utility from Consumption Total Utility from Quantity of Shirts Total Utility from Quantity of Vests Quantity of Shirts Quantity of Vests 31 1 18 N 59 2 35 3 84 3 51 4 - 4 66 - 5 80 a 6 93 How Individuals Decide What to Consume Consumption Bundle Quantity of Shirts Quantity of Vests A 3 0 B 2 N C A D 0 6 That's incorrect - mistakes are part of learning. Keep trying

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics Theory and Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz

9th Edition

978-0132146654, 0132146657, 9780273754091, 978-0273754206

More Books

Students also viewed these Economics questions