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Suppose the following table shows you the utility from consuming quiche and bottles of wine: Bottles of wine Total Utility Marginal utility Marginal utility per
Suppose the following table shows you the utility from consuming quiche and bottles of wine:
Bottles of wine | Total Utility | Marginal utility | Marginal utility per dollar |
0 | 0 | ||
1 | 190 | ||
2 | 370 | ||
3 | 490 | ||
4 | 550 | ||
5 | 570 |
Quiche | Total utility | Marginal Utility | Marginal utility per dollar |
0 | 0 | ||
1 | 110 | ||
2 | 190 | ||
3 | 250 | ||
4 | 290 | ||
5 | 310 |
- Suppose the price of wine is $10 per bottle and the price of a quiche is also $10. Complete the other two columns.
- Suppose you are given $100. And the price of wine is $10 per bottle and the price of a quiche is also $10. What is the optimal combination of consumptions?
- Suppose the price of wine increases to $15 per bottle. How does this change the optimal number of bottles of wine?
- Use the results from 2 and 3 to draw the demand curve for wine.
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