Question
The table above shows Danielle's utility from ice cream and romance novels .a) What is Danielle's marginal utility from the 4th novel? b) The price
The table above shows Danielle's utility from ice cream and romance novels
.a) What is Danielle's marginal utility from the 4th novel?
b) The price of ice cream is $5 per gallon and a novel is $10. If Danielle's budget for these two goods is $50 and she buys 2 gallons of ice cream, how many novels can she buy? If she buys 6 gallons of ice cream, what is her marginal utility per dollar spent on novels?
c) Which combination of the two goods is better: 4 gallons of ice cream and 3 novels or 6 gallons of ice cream and 2 novels?
Ice cream Romance novels Quantity Total utility Quantity Total utility 1 95 1 170 180 2 320 3 255 3 450 4 320 4 560 5 375 5 650 6. 420 6. 720
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
8th edition
134492005, 978-0134492001
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