Writing 1_Week_3

# Writing 1_Week_3 - will the consumer purchase to be in...

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Writing Assessment 1 Week 3 1) Complete the missing cells in the table. Quantity of Total Utility Marginal Utility Quantity Total Utility Marginal Utility Pizza Slices of Pizzas of Pizzas of Movies of Movies of Movies 0 0 0 0 1 25 25 1 48 48 2 43 18 2 75 27 3 54 11 3 92 17 4 59 5 4 99.5 2 5 58 -1 5 101.5 0 2) If the price of a pizza slice is \$4, the price of a movie is \$6 and there is a \$20 budget (the entire budget is spent), how many slices of pizza and movie rentals
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Unformatted text preview: will the consumer purchase to be in consumer equilibrium? Answer: Since the formula to find MU of the product per dollar, we have to divide its MU by price; then if the price of pizza slice is \$4, and the price of a movie to rent is \$6 with a budget of \$20, the consumer have to purchase 2 slices of pizza and 2 movie rentals, to be in consumer equilibrium....
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