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How do I find the answer to letter b? Question 1 [18 points] Paul loves to go on Ski trips. Going on a Ski trip

How do I find the answer to letter b?

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Question 1 [18 points] Paul loves to go on Ski trips. Going on a Ski trip costs Paul a total of $53 per trip. Paul also loves to go to Classical concerts. Going to a concert costs Paul a total of $29 per concert. Paul must allocate his monthly entertainment budget carefully, and has evaluated how much satisfaction, measured in utils, he obtains from each Ski trip and each Classical concert visit. Paul's total utility from each activity is independent of the amount of the other activity he engages in. Paul has an entertainment budget of $290. Visit Number Total Utils Total Utils Marginal Utils Marginal Utils Marginal Marginal [Ski) (Classical) (Ski) Utils/$ (Classical) Utils/$ (Ski) (Classical) 128 73 128 73 2.42 2.52 240 185 112 59 2.11 2.03 338 232 47 1.85 1.62 424 269 86 37 1.62 1.28 500 298 76 29 1.43 1 568 321 23 1.28 0.79 630 340 62 19 1.17 0.66 Suppose that the price of a Classical concert falls to $25 from $29. The income budget remains at $299. Visits past 7 will not give any extra utility. a) Compute Paul's original equilibrium (before the price change). Original number of Ski trips = Original number of Classical concerts = 0 b) Fill out the table for the new MU/P for Classical 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 Classical Utils per $ hips Maccoal Jyrys.com/bladeri-werykis Iobservkikecid 3101&bah 6ksingleQuestion Ofcounc Wikider=147305&command amwer 1023/2016 Lab 6 (Question 1) - Lyryz Learning Inc

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