Ice cream Romance novels
-The table above shows Danielle's utility from ice cream and romance novels.
a) What is Danielle's marginal utility from the 4th novel?
b) The price of ice cream is $5 per gallon and a novel is $10. If Danielle's budget for these two goods is $50 and she buys 2 gallons of ice cream, how many novels can she buy? If she buys 6 gallons of ice cream, what is her marginal utility per dollar spent on novels?
c) Which combination of the two goods is better: 4 gallons of ice cream and 3 novels or 6 gallons of ice cream and 2 novels?
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q345: Bananas Apples Q346: For a consumer, the marginal utility of Q347: Suppose Abe is allocating his entire income Q348: If Tom's total utility from watching one Q349: Bananas Apples Q351: If Dana spends all her income on Q352: A consumer's total utility is maximized when Q353: A consumer will maximize utility when all Q354: Pants Belts Q355: Ice cream Romance novels Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
