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How do I calculate the column MU/$? lattes and magazines to bring about equilibrium? Explain using the concept of marginal utility per dollar spent. 3

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How do I calculate the column "MU/$?

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lattes and magazines to bring about equilibrium? Explain using the concept of marginal utility per dollar spent. 3 . Suppose Bill's budget for lattes and magazines increases. How will this impact his consumption of lattes and magazines? 4. Suppose Bill is in a state of consumer equilibrium and the price of lattes increases. How should he change his consumption? Emma's weekly allowance is $14. She spends all of that money on a combination of Fruit Smoothies and Gum. Complete the chart below and answer the questions that follow. Fruit Smoothies: Price = $5 Packs of Gum: Price = $3 Unit TU MU MU/$ TU MU MU/$ 0 O O 0 O 100 100 60 160 116 M UT A W N HO 208 12 - 156 20 244 36 192 360 18 - 264 ao 5 208 276 3 218 10 5 5. Based on this budget, Emma's utility maximizing combination of Fruit Smoothies and Gum is 2 smoothies and _ 4 packs of gum. 6. Her total utility from this combination would be _352 utils . 7. List the order in which Emma will consume her combination of Fruit Smoothies and packs of Gum. Ex: Smoothie, Gum, Smoothie, Smoothie (continue until she has exhausted her budget). Gem, Gum, smouth, gum, gum smoothie

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