Copy of Ch. 5 # 9-Econ 201

# Copy of Ch. 5 # 9-Econ 201 - \$20 = P(pepsi)xQ(pepsi P(pizza...

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Chapter 5 # 9 Quantity MUz/Pz MUps/Pps 0 0 0 1 47 47 47 111 111 55.5 2 92 45 45 200 89 44.5 3 132 40 40 272 72 36 4 166 34 34 336 64 32 5 196 30 30 386 50 25 224 28 28 426 40 20 7 251 27 27 452 26 13 271 20 20 456 4 2 9 288 17 17 444 -12 -6 10 303 15 15 408 -36 -18 11 313 10 10 340 -68 -34 12 315 2 2 217 -123 -61.5 13 312 -3 -3 92 -125 -62.5 14 300 -12 -12 -17 -109 -54.5 Recall: MU = TU/ Q Δ Δ Utility-Maximizing condition for consumer quilbrium: MU(pizza)/P(pizza) = MU(Pepsi)/P(pepsi) Check if budget constraint is satisfied: Income = total expenditures on the two goods
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Unformatted text preview: \$20 = P(pepsi)xQ(pepsi) + P(pizza) x Q(pizza) \$20 = (\$2) x (6) + (\$1) x (8) satisfied \$20 = 12 + 8 = 20 The mix that will maximize satisfaction is 8 pizzas and 6 pepsis. TU z = Total Utility (pizza) MUz=Marginal Utility (pizza) Total Utility (pepsi) MUps=Ma rginal Utility (pepsi) Pepsi = 6 Pizza= 8...
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