Q1) In the example below, we have $7 to spend on ice cream cones and Big Macs. Choice is between ice cream at $1 a cone and Big Macs at $2 apiece. Based on MU/P columns for Big Macs and Ice Cream, determine the utility-maximizing combination if we have $9 to spend? According TU columns, how many total utils are received?
Big Macs (P = $2)
|
Ice Cream (P = $1)
|
|
Q
|
TU
|
MU
|
MU/P
|
Q
|
TU
|
MU
|
MU/P
|
0
|
0
|
20
|
10
|
0
|
0
|
29
|
29
|
1
|
20
|
14
|
7
|
1
|
29
|
17
|
17
|
2
|
34
|
10
|
5
|
2
|
46
|
7
|
7
|
3
|
44
|
3
|
1.5
|
3
|
53
|
2
|
2
|
4
|
47
|
0
|
0
|
4
|
55
|
1
|
1
|
5
|
47
|
-5
|
-2.5
|
5
|
56
|
0
|
0
|
6
|
42
|
-10
|
-5
|
6
|
56
|
-4
|
-4
|
7
|
32
|
|
|
7
|
52
|
|
|