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The following table reflects John's units and marginal utilities of consuming gasoline, clothing, and food. Assume that the price of gasoline is $18, the price
The following table reflects John's units and marginal utilities of consuming gasoline, clothing, and food. Assume that the price of gasoline is $18, the price of clothing is $6, and the price of food is $4. John's income is $102
Units of gasoline | MU of gasoline | Units of clothing | MU of clothing | Units of food | MU of food |
1 | 72 | 1 | 24 | 1 | 15 |
2 | 54 | 2 | 15 | 2 | 12 |
3 | 45 | 3 | 12 | 3 | 8 |
4 | 36 | 4 | 9 | 4 | 7 |
5 | 27 | 5 | 7 | 5 | 5 |
6 | 18 | 6 | 5 | 6 | 4 |
7 | 15 | 7 | 2 | 7 | 3.5 |
8 | 12 | 8 | 1 | 8 | 3 |
a)Calculate the total utility for each item consumed.
b)What units of gasoline, clothing, and food that should be consumed to maximize John's utility? Explain.
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