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8 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

Essentials of Economics


Edition: 4th
Authors:
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Chimelo46Chimelo46
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#2
8 years ago
Happy to assist!
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#3
3 years ago
thank you
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#4
3 years ago
Thanks you
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