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Need help with this: 5. From consumer equilibrium to the lawI of demand Eleanor has a $25 cosmetics budget that she uses to buy nail
Need help with this:
5. From consumer equilibrium to the lawI of demand Eleanor has a $25 cosmetics budget that she uses to buy nail polish and lipstick. Assume the price of a bottle of nail polish EPNJ is fixed at $5. Table A shows Eleanor's marginal utility (MU) and marginal utility per dollar (%) she receiues from the first through fifth bottles of nail polish she buys each month. Table B shows the same information for lipstick when the price of a tube of lipstick (FL) is either $10 or $5. Assume that Eleanor is a rational consumer who wants to maximize her utility. Table A Nail Polish MU MUIIP (Bottles) Mails) (IfP:5) U 75 15 1 60 12 2 5U 1D 3 35 7' 4 15 3 5 Table B lipstick MU MUHP (Tubes) fUts) (IIFP:$1'0) (IIFP:$5) U 100 10 2D 1 30 8 16 2 60 6 12 3 40 4 a 4 10 1 2 5Step by Step Solution
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