ECON 301 Lecture 4: ECON301 - Lecture 4 - The Utility Function Day 2, Intro to Demand
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Plot bothĀ Rene's total utility graph and marginal utility graph.
Escargot per day | Ā Total utility |
1 | 10 |
2 | 18 |
3 | 23 |
4 | 28 |
5 | 30 |
6 | 30 |
Ā
Consider the table below, which lists James's marginal utility schedule for steak and hamburger meals. Given a budget of $45, how many steak and hamburger meals will James buy per month to maximize his total utility? What is the total utility realized?
Steak meals per month |
Marginal utility of steak meals |
Price per steak meal |
Marginal Utility/ Price |
Hamburger meals per month |
Marginal utility of hamburger meals |
Price per hamburger meal |
Marginal Utility/ Price |
1 |
20 |
$10 |
Ā |
1 |
15 |
$5 |
Ā |
2 |
15 |
$10 |
Ā |
2 |
8 |
$5 |
Ā |
3 |
12 |
$10 |
Ā |
3 |
6 |
$5 |
Ā |
4 |
10 |
$10 |
Ā |
4 |
4 |
$5 |
Ā |
5 |
8 |
$10 |
Ā |
5 |
2 |
$5 |
Ā |