10. Daouda has $35 a day to spend on windsurfing and snorkeling and he can spend
ID: 1211992 • Letter: 1
Question
10. Daouda has $35 a day to spend on windsurfing and snorkeling and he can spend as much time as he likes doing them. The price of renting equipment for windsurfing is $10 an hour and for snorkeling is $5 an hour. Table 1 shows the total utility Daouda gets from each activity Table I Total utility Marginal utility Total utlity Marginal utility from from Hours per day windsurfing windsurfing snorkeling snorkeling from from 220 300 360 396 412 76 106 128 140 150 158 422 a. Fill in the boxes in Table 1 for Daouda's marginal utility from windsurfing at each number of hours per day. Does Daouda's marginal utility from windsurfing obey the principle of diminishing marginal utility? b. Fill in the boxes in Table 1 for Daouda's marginal utility from snorkeling at each number of hours per day. Does Daouda's marginal utility from snorkeling obey the principle of diminishing marginal utility? c. Which does Daouda enioy more: his 6th hour of windsurfing or his 6th hour of snorkeline?Explanation / Answer
TABLE 1
Hours per Day TU from Windsurfing MU from Windsurfing TU from Snorkling MU from Snorkling
1 120 120 40 40
2 220 100 76 36
3 300 80 106 30
4 360 60 128 22
5 396 36 140 12
6 412 16 150 10
7 422 10 158 8
TABLE 2
Hours Windsurfing Hours Snorkeling
3 1
2 3
1 5
0 7
TABLE 3
Hours Windsurfing MU per Dollar from Windsufing Hours Snorkeling MU per Dollar from Snorkeling
3 8 1 8
2 10 3 6
1 12 5 2.4
0 - 7 1.6
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