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Question 4 [15 marks] Margo buys music CDs and movies on DVDs. The table below shows her total utility from each good. a) Draw graphs

Question 4 [15 marks]

Margo buys music CDs and movies on DVDs. The table below shows her total utility from each good.

a) Draw graphs showing Margo's utility from music CDs and from movies on DVDs. (5 marks)

b) Compare the two utility graphs. Describe Margo's preferences. (4 marks)

c) Draw graphs that show Margo's marginal utility from music CDs and from movies on DVDs.

(6 marks)

Quantity Utility from Utility from per year) CDS DVDs units) (units) O 0 0 UI AWNG 50 70 92 130 126 180 152 220 170 250

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