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The price of lottery ticket is$2, the price of a candy bar is $10,and jerry has

ID: 1188221 • Letter: T

Question

The price of lottery ticket is$2, the price of a candy bar is $10,and jerry has $20 a week to spend . Calculate jerrys marginal utility from the second lottery ticket and marginal utility per dollar when he buys 2 lottery tickets. calculate jerrys marginal utility from first candy bar and marginal utility per dollar when he buys 1 candy bar.

                  lottery tickest                                                                                  candy bar

quantity per weeks   total utility                                        quantity per weeks                     total utility

               0                          0                                                             0                                             0

                1                         120                                                      1                                             250

                3                          220                                                   2                                           250

                    2                      220                                                    2                                           450

                   3                          300                                                3                                             600

                   4                        360                                                  4                                                 700

A. jerrys marginal utility from the second lottery ticket is ........... units.

B. the marginal utility per dollar from lottery ticket when jerry buys 2 lottery tickets is.......... unit per dollar

C. jerrys margial utility per dollar from candy bar is .........UNITS

D. the marginal utility per dollar from candy bars when jerry buys 1 candy bar is ..... units per dollar

Explanation / Answer

a .225 b.350 c.400 d.650

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