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Daniel [21]
4 years ago
5

An optimizing consumer currently spends money on many goods. The last ticket to a baseball game she bought cost $15 and gave her

10 utils of satisfaction. If this same consumer spends $10 on a movie ticket and is still optimizing utility, how many utils will she receive from the purchase
Business
1 answer:
OLga [1]4 years ago
7 0

Answer:

Number of utils that will be received from the purchase is 6.667 utils.

Explanation:

At Optimum:

Pa / Pb = MUa / MUb

Where;

Pa = Price of the baseball game = 15

Pb = Price of the movie ticket = 10

Now,

15/10 = 10/MUb

1.5 = 10/MUb

MUb = 6.667 utils

Thus, the number of utils that will be received from the purchase is 6.667 utils.

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