Econ190%20HW4

Econ190%20HW4 - Economics 190 Homework Set #4 Due: October...

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Economics 190 Homework Set #4 Due : October 7, 2007 at midnight Instructions : Answer the following questions to your best ability. Please show all work and be sure to label all axes and curve and show numerical intercepts and intersections wherever possible. Partial credit will be given where appropriate. 1. Use the accompanying table below that contains data on Erika’s total utility (TU) from her consumption of Goods J, K, and L to answer subparts (a) through (d). Good J Good K Good L Quantity TU J MU J MU J /P J TU K MU K MU K /P K TU L MU L MU L /P L 0 0 ---- ---- 0 ---- ---- 0 ---- ---- 1 14 30 40 2 26 54 76 3 36 72 108 4 44 84 136 5 50 90 160 6 54 90 180 7 56 84 196 8 56 72 208 9 54 54 216 (a) Calculate the marginal utilities for Goods J, K, and L (record your answers in the table above). (b) Given that P J = $2, P K = $6, and P L = $16, calculate the ratio of marginal utility to price for all three goods (record your answers in the table above). (c) Assume that Erika has $88 to spend.
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This note was uploaded on 04/13/2008 for the course ECON 190 taught by Professor Belasen during the Spring '08 term at Saint Louis.

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Econ190%20HW4 - Economics 190 Homework Set #4 Due: October...

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