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Unit 5 Assignment: The Rational Consumer
Name: –
Course Number: –
Section Number: –
Unit Number: – 5
Date: –
Newspaper vending machines are designed so that once you have paid for one paper; you have access to all the papers in the machine and could take multiple papers at a time. However, other vending machines dispense only one item (the item you bought). You do not have access to all the goods (sodas, candy, snacks, etc.) at one time.
Amy is shopping at a dollar store. She is currently buying 5 bracelets that cost $1 each and 4 sodas that cost $1 each. The table below indicates the marginal utility she obtains when she purchases this combination.
|
Quantity |
Price per Unit |
MU per unit |
Bracelets |
5 |
$1 |
30 |
Sodas |
4 |
$1 |
40 |
Answer the following assuming that one more bracelet is purchased and one less soda is consumed:
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