Suppose after paying bills and setting aside some money for retirement, Joana has $130 dollars left to spend on just two goods: concerts and books. Assume book price is $100 and the marginal utility that Joana received from reading book is 200. What is Joana's marginal utility from concerts if it is maximizing its utility when concert ticket/price is $30. (hints: marginal utility per dollar approach can be used to solve this question)

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Refer to the information provided in graph below to answer the question that follows.

Explain why the consumer chooses neither C nor B, but D.

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The highest indifference curve depicted is the one on which point F lies. Why is consumer NOT maximizing his utility at point F?

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How can the current indifference (U1) curve shift upward or downward?

How can the current budget line shift upward or downward?

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Explain the indifference map for the above graph.

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