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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

  1. Suppose the price of wine is $10 per bottle and the price of a quiche is also $10. Complete the other two columns.
  2. 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?
  3. Suppose the price of wine increases to $15 per bottle. How does this change the optimal number of bottles of wine?
  4. Use the results from 2 and 3 to draw the demand curve for wine.

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