i have a table that I have to fill in the blanks. It it referring to total numbe

Question

i have a table that I have to fill in the blanks. It it referring to total number of pizzas and marginal utility of pizzas, along with total utility of movies and marginal utility of movies, the price of a slice of pizza is $4 and the price of a movie is $6, and my over all budget is $20. How do i figure out how to either get the answer for the marginal number of pizzas or movies as well as the total utility and marginal utility of movies base upon a budget of just $20? I know that there has to be a simple formula to arrive at the answers needed. I am sure that once I know what the formula is in calculating either the price of pizzas or the price of the movies, then the formula will work on both. Please show me the formula and explain how to use it.

Thanks
Bill Turner

Explanation / Answer

Total Utility (TU):
Definition and Explanation:
"Total utility is the total satisfaction obtained from all units of a particular commodity consumed over a period of time".

For example, a person consumes eggs and gains 50 utils of total utility. This total utility is the sum of utilities from the successive units (30 utils from the first egg, 15 utils from the second and 5 utils from the third egg).
Summing up total utility is the amount of satisfaction (utility) obtained from consuming a particular quantity of a good or service within a given time period. It is the sum of marginal utilities of each successive unit of consumption.

Formula:
TUx = MUx

Marginal Utility (MU):
Definition and Explanation:
"Marginal utility means an additional or incremental utility. Marginal utility is the change in the total utility that results from unit one unit change in consumption of the commodity within a given period of time".
For example, when a person increases the consumption of eggs from one egg to two eggs, the total utility increases from 30 utils to 45 utils. The marginal utility here would be the15 utils of the 2nd egg consumed.
Marginal utility, thus, can also be described as difference between total utility derived from one level of consumption and total utility derived from another level of consumption.

Formula:
MU = TU/Q

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