Marc has an income of $20 per month. Root beer costs $5 per can, and CDs cost $1
ID: 1143279 • Letter: M
Question
Marc has an income of $20 per month. Root beer costs $5 per can, and CDs cost $10 each. Find Marc’s utility maximizing consumption bundle.
a. What is Marc’s utility maximizing consumption bundle?
b. At his utility maximizing point, what is his OC of Root Beer in terms of CDs?
c. If the price of a CD falls to $5, and the price of Root Beer remains the same, find Marc’s new utility maximizing bundle.
d. What are 2 points on Marc’s demand curve for CDs?
Marc has an income of $20 per month. Root beer costs $5 per can, and CDs cost $10 each. Find Marc's utility maximizing consumption bundle. a. What is Marc's utility maximizing consumption bundle? botle(s) of Root beer andCD(s) b. At his utility maximizing point, what is his OC of Root Beer in terms of CDs? CD(s) c. If the price of a CD falls to $5, and the price of Root Beer remains the same, find Marc's new utility maximizing bundle. bottle(s) of Root beer andCD(s) d. What are 2 points on Marc's demand curve for CDs? Q1CD(s)Explanation / Answer
A. 2 bottles of roit beer and 1 CD
B. OC of root beer in terms of CD = 1/2= 0.5 CD
C. 2 Bottles of root beer and 2 CDs
D. P1=$10 . Q1= 2
P2= $5. Q2=4