{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Homework on Chapter 5

Homework on Chapter 5 - consuming movie rentals 2 And units...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework on Chapter 5 A college student has a weekly budget of $40. She prefers to spend this on video rentals and other consumer goods. Video rentals cost $4 each, while consumer goods costs on average, $8 per unit. Her preferences are reflected in the following marginal utilities. Video Rental @ Consumer Goods @ Quanti ty $4 $8 Per week MU MU / Price MU MU / Price 0 1 40 56 2 28 32 3 20 24 4 12 18 5 8 12 6 6 8 1. Given her present weekly budget of $40, the prices of movie rentals and Consumer goods, the college student will maximize her total utility by
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: consuming: ___ movie rentals, 2. And___ units of consumer goods. 3. Given the prices of movie rentals, and consumer goods, her preferences, and her weekly budget, she will be able to enjoy ___ units of utility. 4. Now, while every thing else remain the same, the price of Consumer goods drops to $6. To maximize her total utility, she will now buy ___ units of consumer goods 5. And ___ movie rentals. 6. Use the information you developed to draw the demand curve for consumer goods....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern