Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn
Total Utilityfrom Multiplex Tickets
Total Utilityfrom Video Rentals
Total Utilityfrom Popcorn
1 movie (30 utils)
1 video (14 utils)
1 bag (8 utils)
2 movies (54 utils)
2 videos (24 utils)
2 bags (13 utils)
3 movies (72 utils)
3 videos (30 utils)
3 bags (15 utils)
4 movies (84 utils)
4 videos (32 utils)
4 bags (16 utils)
In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. Suppose the consumer has $12 per week to spend on multiplex tickets, video rentals, and popcorn. What combination of goods will give the consumer the most utility?
A. 1 movie, 3 videos, and no popcorn.
B. 1 movie, 2 videos, and 2 bags of popcorn.
C. 1 movie, 1 video, and 4 bags of popcorn.
D. 2 movies, no videos, and no bags of popcorn.
Answer: B
You might also like to view...
Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the accompanying table.Number of Mugs Per DayTotal Cost Per Day0$101$142$193$254$325$406$49 The marginal cost if the 4th mug per day is ________.
A. $32 B. $5 C. $7 D. $8
Customers who visit convenience stores at 3 a.m. have a price elasticity of demand that is _____________ elastic than those who visit at 3 p.m.
A. more B. less
Under the gold standard, a country with a negative balance of trade would experience
A. an inflow a gold and higher prices. B. an inflow of gold and lower prices. C. an outflow of gold and higher prices. D. an outflow of gold and lower prices.
In Macroland, 500 000 of the 1 million people in the country are employed. Average labour productivity in Macroland is $20 000 per worker. Real GDP per person in Macroland totals:
A. $1000 B. $10 000 C. $15 000 D. $20 000