Question

Sam is willing to pay $12 per month for 1 green egg per month, $10 for the 2nd, $8 for the 3rd, etc. The market price of green eggs is $8. He is willing to pay $20 per month for 1 slice of ham, $16 for the 2nd, $12 for the 3rd, etc. The market price for ham slices is $12.
1. Sam purchases ____ green eggs per month and ____ ham slices per month. He spends $___ on eggs and $___ on ham.
2. Which good provides Sam with the greatest net benefits?
3. If green eggs is now $6. Which good provides Sam with the greatest net benefits?

Answer 1

Answer:

1. Sam purchases 3 green eggs every month and 3 ham slices every month. He spends $24 on eggs and $36 on ham.

2. Ham provides Sam with the greatest net benefits.

3. If the eggs cost $6 the net benefits for Sam would be the same for both

( egg and ham)

Explanation:

Given data:

cost of per green egg per month =  $12

         2nd egg ...................................   = $10

         3rd egg ...................................    = $8

cost of 1 slice ham per month =  20

            2nd slice ........................= $16

            3rd slice .....................    = $12

1. Sam purchases 3 green eggs every month and 3 ham slices every month. He spends $24 on eggs and $36 on ham.

2. Ham provides Sam with the greatest net benefits.

3. If the eggs cost $6 the net benefits for Sam would be the same for both ( egg and ham)