Question
The table below shows the total benefit, in dollars, that Courtney derives from consuming two goods, Good F and candy bars.Courtney has a limited weekly
The table below shows the total benefit, in dollars, that Courtney derives from consuming two goods, Good F and candy bars.Courtney has a limited weekly income of $20, and she spends it all on Good F and candy bars. Assume the price of Good F is $2 per unit and the price of a candy bar is $4.A) What is the marginal benefit of the 4th Good F and the 5th Candy Bar purchased by Courtney? B. Identify the quantity of Good F and the quantity of candy bars that will maximize Courtney's total benefit given her weekly income. Explain using marginal analysis.C. Calculate Courtney's consumer surplus from the fourth candy bar. Show your work. D. If Courtney's weekly income decreases from $20 to $18, would Courtney be able to buy 5 units of Good F and 2 candy bars? Explain using numbers. E. Instead, suppose that Courtney's income increases by 10% and her consumption of candy bars decreases by 20%. For Courtney, are candy bars an inferior good, a normal good or a complementary good? Explain.F. Suppose instead that the price of Good F increases by 9% and Courtney buys 6% less of Good F and 3% less of Good W. Based on this change, identify whether Good F and Good W are substitutes, complements, or not related. Explain using numbers.
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