Question
Joey is a college student living in Boston. He has preferences over only two goods, small pies at Pizzeria Regina (denoted by PR ) and
Joey is a college student living in Boston. He has preferences over only two goods, small pies at Pizzeria Regina (denoted by PR) and Red Sox games (denoted by RS). Joey has $150 per month in disposable income to spend on baseball games and pizza, the price of a small pie at Pizzeria Regina is $10 and the price of a Red Sox ticket is $20.
Using the table below, solve for the bundle of small Regina Pizzeria pies and Red Sox games that maximizes Joey's utility/well-being/satisfaction. Complete the questions below to answer the online questions.
- Fill in the missing information in the above table.
- Identify all combinations that meet the utility maximizing rule.
- Identify all expenditures for all combinations in Part 2.
- What is the combination of pies and games that maximizes Joey's utility?
- At the utility maximizing point, what is Joey's utility level?
| Pizzas | Red Sox Games | ||||||
| Qty | TU | MU | MU/$ | Qty | TU | MU | MU/$ |
| 0 | 0 | NA | NA | 0 | 0 | NA | NA |
| 1 | 100 | 1 | 240 | ||||
| 2 | 195 | 2 | 460 | ||||
| 3 | 285 | 3 | 660 | ||||
| 4 | 370 | 4 | 840 | ||||
| 5 | 450 | 5 | 1000 | ||||
| 6 | 525 | 6 | 1140 | ||||
| 7 | 595 | 7 | 1260 | ||||
| 8 | 660 | ||||||
| 9 | 710 | ||||||
| 10 | 740 |
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College Physics A Strategic Approach
Authors: Randall D. Knight, Brian Jones, Stuart Field
3rd Edition
0321879724, 9780321879721
