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Fill in respective columns in the table and answer

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7.Fill in respective columns in the table and answer questions below.Unitsofsteak(1)TotalUtility(2)MarginalUtility(3)MU/P1(4)MU/P2(5)MU/P3(6)Unitsofshirts(7)TotalUtility(8)MarginalUtility(9)MU/P4(10)00--------00----1150150251530120020020229014023.3331428235015015339010016.666102034801301344708013.3338164580100105530601061256608086580508.333351067004042
a. Let the price of steak P1 equal $6 and the price of shirts P4 equal $10. Completecolumns (3), (4), (9), and (10). Determine the quantity of steaks and shirts a consumerwill buy if his/her income is $70.
b. Suppose the price of steaks increases to $10. Complete column (5) and find thequantity of steaks and shirts such that the consumer is in equilibrium (income is $70).
c. Suppose the price of steaks falls to $5. Complete column (6), find the quantity ofsteaks and shirts consumed (income is $70). Draw the demand curve for steaks on thereverse side of this sheet.6 steaks and 4 shirtsTheory of Supply: Business Firm Behavior—Chapter 20When the Market “Works”: Competitive Pricing—Chapter 211.Many country inns shut down in the off-season because (circle one):

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Term
Fall
Professor
Williams

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