67 967 700 500 300 bowling 6 per game games 5 4 3 2 2

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Unformatted text preview: ent 4.17 4.67 6.00 7.00 7.00 12.50 Price (dollars per game) Bowling 6 Lisa’s demand for bowling 3 0 2 5 Quantity (games per month) Price (dollars per movie) A Rise in the Price of Bowling Rise Movies 6 3 0 Lisa’s demand ’s for movies when bowling costs $6 bowling Lisa’s ’s demand for movies when bowling bowling costs $3 5 6 Quantity (movies per month) Predictions of Marginal Predictions Utility Theory Two predictions of marginal utility theory: When the price of a good rises, the quantity demanded for that good decreases. If the price of one good rises, the demand for another good that can serve as a substitute increases. EXPLAINE D theory of theory Chapter 3 Chapter Lisa’s Choices with an ’s Income of $42 a Month Income Movies ($3 per movie) Movies Marginal utility Quantity per dollar spent Quantity spent spent 0 1 16.67 2 12.67 3 11.00 4 9.67 5 8.33 6 7.00 7 6.00 7 6.00 8 5.00 9 4.00 10 3.00 11 2.00 12 1.00 13 0.67 14 0.33 Bowling ($3 per game) Marginal utility Games per dollar 14 13 12 11 10 9 8...
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This document was uploaded on 03/13/2014.

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