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Suppose that Joe consumes smoothies and pizzas. The price of smoothies is $ 5 per unit and the price of pizzas is $ 1 0
Suppose that Joe consumes smoothies and pizzas. The
price of smoothies is $ per unit and the price of pizzas
is $ per unit. The table shows Joe's utility from the
consumption of each good; each row represents a
possible consumption bundle. Currently, Joe is
consuming smoothies and pizzas.
Calculate the marginal utility per dollar of going from eight to nine pizzas.
To increase total utility without increasing spending, should Joe change the amount of consumption of either good?
No Joe is already consuming at the optimal consumption bundle.
Yes, Joe should choose more smoothies and fewer pizzas.
Yes, Joe should choose fewer smoothies and more pizzas.
Yes, Joe should choose more smoothies and more pizzas.
What is the total utility at the optimal consumption bundle?
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