How many cds and how many dvds should sarah purchase if she


The following table gives Sarah's willingness to pay for music CDs and movie DVDs. Calculate Sarah's marginal utility for CDs and DVDs by filling in the columns of the table labeled "marginal utility." Suppose the price of a CD is $10 and the price of a DVD is $30. How many CDs and how many DVDs should Sarah purchase if she has a fixed budget of $150 to spend on these two items? Suppose her budget for these two goods is only $80. How many CDs and how many DVDs should she purchase?

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Econometrics: How many cds and how many dvds should sarah purchase if she
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