both goods is $1 per unit,? Apples Oranges
Units Total Utility Units Total Utility
0 0 0 0
1 15 1 22
2 28 2 41
3 39 3 58
4 48 4 73
5 55 5 85
1)Linda spends $5 a week on apples and oranges. If the price of both goods is $1 per unit, how many apples and oranges, respectively, does she purchase per week if she wants to maximize her utility?
2)Linda spends $5 a week on apples and oranges. If the price of both goods is $1 per unit, what is Linda's total utility from consuming the optimal bundle of goods?
3) Assume that the price of oranges increases to $2, while the price of apples remains at $1, and Linda allocates $5 of the weekly food budget to purchasing apples and oranges. If Linda wants to maximize her utility, her new consumption bundle will consist of
4)If total utility declines as the quantity consumed of a good increases, it follows that marginal utility must be
1. There is not enough information to answer the question.
2. negative.
3. rising.
4. staying constant.
5. declining.
5)Suppose you could quantify the amount of satisfaction you receive from consuming ice cream in money terms. You might say, "I expect to get $3 worth of satisfaction from this ice cream cone." According to traditional economic theory, if the price of this ice cream cone were $3.05, would you buy one?
Units Total Utility Units Total Utility
0 0 0 0
1 15 1 22
2 28 2 41
3 39 3 58
4 48 4 73
5 55 5 85
1)Linda spends $5 a week on apples and oranges. If the price of both goods is $1 per unit, how many apples and oranges, respectively, does she purchase per week if she wants to maximize her utility?
2)Linda spends $5 a week on apples and oranges. If the price of both goods is $1 per unit, what is Linda's total utility from consuming the optimal bundle of goods?
3) Assume that the price of oranges increases to $2, while the price of apples remains at $1, and Linda allocates $5 of the weekly food budget to purchasing apples and oranges. If Linda wants to maximize her utility, her new consumption bundle will consist of
4)If total utility declines as the quantity consumed of a good increases, it follows that marginal utility must be
1. There is not enough information to answer the question.
2. negative.
3. rising.
4. staying constant.
5. declining.
5)Suppose you could quantify the amount of satisfaction you receive from consuming ice cream in money terms. You might say, "I expect to get $3 worth of satisfaction from this ice cream cone." According to traditional economic theory, if the price of this ice cream cone were $3.05, would you buy one?