Problem 1

Kath is a BSA student who must decide whether to spend his time studying or watch

K-drama. The school has recently started a pilot program to incentivize studying by

offering cash rewards for good grades. Based on what we know about marginal utility,

how would we expect this program to affect Kath's behavior and why?

Problem 2

Suppose that the price of pineapples is $4 per unit and the price of scissors is $15 per

unit. In addition, suppose that your income is $500.

If you spend all your money on pineapples, how many pineapples can you buy?

If your answer is not a whole number it should include two digits after the decimal point.

Problem 3

Suppose that the price of pineapples is $2 per unit and the price of books is $14 per

unit. In addition, suppose that your income is $1300.

If you spend all your money on books, how many books can you buy?

If your answer is not a whole number it should include two digits after the decimal point.