Table 6.7
$$\begin{array} { | c | c | }
\hline \text { Frice per Fiece } ( \$ ) & \text { Quantity } \
\hline 8 & 0 \
\hline 7 & 1 \
\hline 6 & 2 \
\hline 5 & 3 \
\hline 4 & 4 \
\hline 3 & 5 \
\hline 2 & 6 \
\hline 1 & 7 \
\hline
\end{array}$$
-Refer to Table 6.7,which shows Ethan's demand for sushi at various prices.The dollar value of the total utility of the first four pieces is valued at $_____
A)7.
B)1.
C)22.
D)16.
E)4.

Question

Table 6.7
 $$\begin{array} { | c | c | } 
\hline \text { Frice per Fiece } ( \$ ) & \text { Quantity } \
\hline 8 & 0 \
\hline 7 & 1 \
\hline 6 & 2 \
\hline 5 & 3 \
\hline 4 & 4 \
\hline 3 & 5 \
\hline 2 & 6 \
\hline 1 & 7 \
\hline
\end{array}$$
-Refer to Table 6.7,which shows Ethan's demand for sushi at various prices.The dollar value of the total utility of the first four pieces is valued at $_____
A)7.
B)1.
C)22.
D)16.
E)4.

Quizplus · Accepted Answer

To calculate the total utility of the first four pieces, we add up the quantity at each price up to the fourth piece: $0+1+2+3=6$. Then we multiply this quantity by the corresponding price of each piece: $6*\$3= \$18$. However, the question asks for the dollar value of the total utility, not the total expenditure. Utility is measured in satisfaction or happiness, not dollars, so we need to consider the satisfaction Ethan receives from each additional piece of sushi. Since the price per piece decreases as Ethan consumes more sushi, the marginal utility of each additional piece increases. Therefore, the total utility of the first four pieces is worth less than the total expenditure of $\$18$.

Looking at the table, we can see that as the price decreases, the quantity demanded increases. The optimal choice for Ethan would be the point at which the marginal utility (satisfaction) equals the price of the sushi. This occurs at a price of $\$3$ and a quantity of 5 pieces. Therefore, the best choice for Ethan would be to purchase 5 pieces of sushi at a price of $\$3$ each.

Table 67 -Refer to Table 6