Question: Pete enjoys rock concerts and the opera. The table shows the marginal utility he gets from each activity.
|
Number per month
|
Marginal utility from Rock concerts
|
Marginal utility from operas
|
|
1
|
120
|
200
|
|
2
|
100
|
160
|
|
3
|
80
|
120
|
|
4
|
60
|
80
|
|
5
|
40
|
40
|
|
6
|
20
|
0
|
Pete has $200 a month to spend on concerts. The price of a rock concert ticket is $20 and the price of an opera ticket is $40.
Pete’s uncle gives him $60 to spend on concert tickets, so he now has $260.
Q1. Draw a graph that shows Pete’s consumption possibilities.
Q2. How many rock concerts and how many operas does Pete now attend?