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Lilly Davis has $5 per week to spend on any combination of ice cream and candy. The price of an ice wrote... Posts: 9704 6 years ago Lilly Davis has$5 per week to spend on any combination of ice cream and candy. The price of an ice cream cone is $2 and the price of a candy bar is$1. The table below shows Lilly's utility values. Use the table to answer the questions that follow the table.

Quantity of Ice Cream Cones   Total Utility   Marginal Utility   Marginal Utility per Dollar   Quantity of Candy   Total Utility   Marginal Utility
1   20         1   20
2   38         2   38
3   52         3   48
4   62         4   54

a.   Complete the table by filling in the blank spaces.
b.   Suppose Lilly purchases 2 ice cream cones and 1 candy bar. Is she consuming the optimal consumption bundle? If so, explain why. If not, what combination should she buy and why?
Textbook

Essentials of Economics

Edition: 4th
Authors:
8 Replies
Repeat after me: 'Calm down. Things are gonna be fine. Things are gonna be all great. Just relax.'
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Chimelo46Chimelo46
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6 years ago

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wrote...
6 years ago
 I found this question very tricky (not sure why). Thanks for confirming my initial thoughts on it. I will mark this topic solved now.
 Repeat after me: 'Calm down. Things are gonna be fine. Things are gonna be all great. Just relax.'
wrote...
6 years ago
 Happy to assist!
wrote...
A year ago
 thank you
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A year ago
 Thanks you
wrote...
8 months ago
 Thanks!
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7 months ago
 Thanks
wrote...
A month ago
 Thanks!