# ECON 3300 Lecture Notes - Lecture 10: Marginal Utility, Opportunity Cost, Deadweight Loss

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31 May 2020
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## Document Summary

Table 10-2 above shows keira"s utility from soup and sandwiches. The price of soup is per cup and the price of a sandwich is . Keira has to spend on these two goods: refer to table 10-2. What is keira"s marginal utility per dollar spent on the third cup of soup: 72 units of utility, 36 units of utility, 12 units of utility, 6 units of utility, refer to table 10-2. Suppose keira"s income increases from to but prices have not changed. Holding prices constant, when keira"s income changed from to , her utility maximizing bundle changed. When the price of hoagies increases from . 00 to . 75, quantity demanded decreases from q1 to q0. This change in quantity demanded is due to: the income and substitution effects, the law of diminishing marginal utility, the fact that marginal willingness to pay falls, the price and output effects, refer to figure 10-1.