Table 7-2
$$\begin{array} { | c | c | c | c | }
\hline \begin{array} { c }
\text { Quantity of } \
\text { Soup (cups) }
\end{array} & \text { Total Utility } & \begin{array} { c }
\text { Quantity of } \
\text { Sandwiches }
\end{array} & \text { Total Utility } \
\hline 1 & 40 & 1 & 45 \
\hline 2 & 60 & 2 & 75 \
\hline 3 & 72 & 3 & 102 \
\hline 4 & 82 & 4 & 120 \
\hline 5 & 88 & 5 & 135 \
\hline 6 & 90 & 6 & 145 \
\hline
\end{array}$$
Table 7-2 above shows Keira's utility from soup and sandwiches.The price of soup is $2 per cup and the price of a sandwich is $3.Keira has $18 to spend on these two goods.
-Refer to Table 7-2.What is Keira's marginal utility per dollar spent on the third cup of soup?
A)72 units of utility
B)36 units of utility
C)12 units of utility
D)6 units of utility

Question

Table 7-2
 $$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity of } \
\text { Soup (cups) }
\end{array} & \text { Total Utility } & \begin{array} { c } 
\text { Quantity of } \
\text { Sandwiches }
\end{array} & \text { Total Utility } \
\hline 1 & 40 & 1 & 45 \
\hline 2 & 60 & 2 & 75 \
\hline 3 & 72 & 3 & 102 \
\hline 4 & 82 & 4 & 120 \
\hline 5 & 88 & 5 & 135 \
\hline 6 & 90 & 6 & 145 \
\hline
\end{array}$$ 
Table 7-2 above shows Keira's utility from soup and sandwiches.The price of soup is $2 per cup and the price of a sandwich is $3.Keira has $18 to spend on these two goods.
-Refer to Table 7-2.What is Keira's marginal utility per dollar spent on the third cup of soup?
A)72 units of utility
B)36 units of utility
C)12 units of utility
D)6 units of utility

Quizplus · Accepted Answer

The marginal utility of the third cup of soup is the change in total utility from 2 to 3 cups, which is 72 - 60 = 12 units. The price of soup is $2, so the marginal utility per dollar is 12 / 2 = 6 units.

Table 7-2 Table 7-2 Above Shows Keira's Utility from Soup and Sandwiches