Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Table 1 Quantity of Total Utility Quantity of Bubble Tea Total Utility Pita Wrap

ID: 1237415 • Letter: T

Question

Table 1
Quantity of Total Utility Quantity of Bubble Tea Total Utility
Pita Wraps
1 60 1 36
2 108 2 66
3 150 3 90
4 186 4 111
5 216 5 129
6 216 6 144
7 217 7 145

10) Calculate the marginal utility per dollar spent on the 3rd pita wrap and the 3rd bubble tea.
A) MUPita/PPita=6, MUBuble/PBubble=7 C) MUPita/PPita=7, MUBuble/PBubble=8
B) MUPita/PPita=25, MUBuble/PBubble=30 D) MUPita/PPita=6, MUBuble/PBubble=6

11) What is Keegan's optimal consumption bundle given that he has $30 to spend and the price of a Pita
Wrap is $6 and the price of a glass of Bubble Tea is $3?
A) 3 pita wraps and 3 bubble teas C) 4 pita wraps and 2 bubble teas
B) 3 pita wraps and 4 bubble teas D) 5 pita wraps and 0 bubble teas

12) What is Keegan's optimal consumption bundle when the price of the Bubble Tea increases to $6, and
everything else remains the same, i.e., Keegan

Explanation / Answer

B C D A D C