You are hungry and thirsty and have $45.00 in your wallet/purse. You want to max
ID: 1217068 • Letter: Y
Question
You are hungry and thirsty and have $45.00 in your wallet/purse. You want to maximize your utility and find your consumer optimum. Here is a table of your current situation:
Jamba Juice: $5.00
Teryaki Bowl: $5.00
Jamba Juice Total Utility Teryaki Bowl Total Utility
0 0 0 0
1 100 1 600
2 220 2 1100
3 280 3 1500
4 330 4 1600
5 350 5 1650
5. What is your MU/P for Teryaki Bowls at 3 quantities?
A. 20
B. 100
C. 10
D. 80
6. What is your MU/P for Jamba Juice at 4 quantities?
A. 20
B. 100
C. 10
D. 80
7. What is Consumer Optimum when the only factor is price?
A. 2 Jamba Juices and 2 Teryaki Bowls
B. 3 Jamba Juices and 1 Teryaki Bowl
C. 1 Jamba Juice and 4 Teryaki Bowls
D. 4 Jamba Juices and 5 Teryaki Bowls
8. What is Consumer Optimum when both factors are price and income?
A. 2 Jamba Juices and 2 Teryaki Bowls
B. 3 Jamba Juices and 1 Teryaki Bowl
C. 1 Jamba Juice and 4 Teryaki Bowls
D. 4 Jamba Juices and 5 Teryaki Bowls
Explanation / Answer
5)80
6)10
7) 1 jamba juice and 4 teryaki bowls
8) 4 jamba juice and 5 teryaki bowls
consumer optimum--> MU/P is equal for both when only price is considered and when both are considered best possible bundle of goods tht can be consumed given the income