Lilly Davis has $5 per week to spend on any combination of ice cream and candy.The price of an ice cream cone is $2 and the price of a candy bar is $1.The table below shows Lilly's utility values.Use the table to answer the questions that follow the table.
$\begin{array}{|c|c|c|c|c|c|c|}
\hline\begin{array}{c}
\text { Quantity } \
\text { of Ice } \
\text { Cream } \
\text { Cones }
\end{array} & \text { Total } & \begin{array}{c}
\text { Utility } \
\text { Utility }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Utility per } \
\text { Dollar }
\end{array} & \begin{array}{c}
\text { Quantity } \
\text { of Candy }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Utility }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Utility }
\end{array} \
\hline 1 & 20 & & & 1 & 20 & \
\hline 2 & 38 & & & 2 & 38 & \
\hline 3 & 52 & & & 3 & 48 & \
\hline 4 & 62 & && 4 & 54 & \
\hline
\end{array}$
a.Complete the table by filling in the blank spaces.
b.Suppose Lilly purchases 2 ice cream cones and 1 candy bar.Is she consuming the optimal consumption bundle? If so,explain why.If not,what combination should she buy and why?

Question

Lilly Davis has $5 per week to spend on any combination of ice cream and candy.The price of an ice cream cone is $2 and the price of a candy bar is $1.The table below shows Lilly's utility values.Use the table to answer the questions that follow the table.
 $\begin{array}{|c|c|c|c|c|c|c|}
\hline\begin{array}{c}
\text { Quantity } \
\text { of Ice } \
\text { Cream } \
\text { Cones }
\end{array} & \text { Total } & \begin{array}{c}
\text { Utility } \
\text { Utility }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Utility per } \
\text { Dollar }
\end{array} & \begin{array}{c}
\text { Quantity } \
\text { of Candy }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Utility }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Utility }
\end{array} \
\hline 1 & 20 &  &  & 1 & 20 & \
\hline 2 & 38 &   &   & 2 & 38 & \
\hline 3 & 52 & & & 3 & 48 &  \
\hline 4 & 62 & && 4 & 54 & \
\hline
\end{array}$ 
a.Complete the table by filling in the blank spaces.
b.Suppose Lilly purchases 2 ice cream cones and 1 candy bar.Is she consuming the optimal consumption bundle? If so,explain why.If not,what combination should she buy and why?

Quizplus · Accepted Answer

The Answer of Lilly Davis has $5 per week to spend on any combination of ice cream and candy.The price of an ice cream cone is $2 and the price of a candy bar is $1.The table below shows Lilly's utility values.Use the table to answer the questions that follow the table.
 $\begin{array}{|c|c|c|c|c|c|c|}
\hline\begin{array}{c}
\text { Quantity } \
\text { of Ice } \
\text { Cream } \
\text { Cones }
\end{array} & \text { Total } & \begin{array}{c}
\text { Utility } \
\text { Utility }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Utility per } \
\text { Dollar }
\end{array} & \begin{array}{c}
\text { Quantity } \
\text { of Candy }
\end{array} & \begin{array}{c}
\text { Total } \
\text { Utility }
\end{array} & \begin{array}{c}
\text { Marginal } \
\text { Utility }
\end{array} \
\hline 1 & 20 &  &  & 1 & 20 & \
\hline 2 & 38 &   &   & 2 & 38 & \
\hline 3 & 52 & & & 3 & 48 &  \
\hline 4 & 62 & && 4 & 54 & \
\hline
\end{array}$ 
a.Complete the table by filling in the blank spaces.
b.Suppose Lilly purchases 2 ice cream cones and 1 candy bar.Is she consuming the optimal consumption bundle? If so,explain why.If not,what combination should she buy and why?

Lilly Davis Has $5 Per Week to Spend on Any