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instructions I help estion 1 (of 7 Save & Ext Submit Save & Exit 11 Submit 1 val

ID: 1210303 • Letter: I

Question

instructions I help estion 1 (of 7 Save & Ext Submit Save & Exit 11 Submit 1 value 10.00 points Potatoes cost Janice $1.00 per pound and she has $5 00 that she could possibly spend on potatoes or other items. If she feels that the first pound of potatoes is worth $1.50. the second pound is worth $114. the third pound is worth $1.05. and all subsequent pounds are worth $0.30. how many pounds of potatoes will she purchase? What if she only had $2.00 to spend? Janice will purchase of $5.00 poundes) of potatoes with her original income Janice will purchase $2.00 poundis) of potatoes when her income is References eBook & Resources Settion The Numeric Response Learning Objective: 01-01 Define economies and the features of the economic perspective 544 PM

Explanation / Answer

Potato weight             Potato’s cost feeling      Marginal Utility

1                                        $1.50                                     -

2                                        $1.14                                     0.36

3                                        $1.05                                     0.09

4                                        $0.30                                     0.75

5                                        $0.30                                     0

6                                        $0.30                                     0

7                                        $0.30                                     0

8                                        $0.30                                     0

She will get the maximum benefit by buying 4 pounds of Potato, with $5.00 to spent

If she has $2 then she can buy only 1 pound of potato.

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