Question

Concept: Derive Individual Demand Curve The following table shows Ellie's utility from consuming slices of pie and cans of Dr. Pepper. Slices Marginal Utility Cans Marginal of from Last Slice of Utility from Dr. Pepper Last Can Pie 120 120 100 60 20 45 30 20 15 占2.5 Q. Suppose Ellie has $12 per week to spend on pie and Dr. Pepper and that the price of a slice of pie is $2.00 1.) Use the point drawing tool to plot Ellie's demand for Dr. Pepper at a price of $2.00. Label this point 'A. 2.) Use the point drawing tool to plot Ellie's demand for Dr. Pepper at a price of $4.00. Label this point 'B' 3.) Use the line drawing tool to connect the dots to form Ellie's demand curve. Properly label this line Carefully follow the instructions above, and only draw the required objects. Quantity of Dr. Pepper

Answer 1

Slices of Pie	MU	MU/P	Cans of Dr. Pepper	MU	MU/P
0			0
1	120	60	1	120	60
2	100	50	2	60	30
3	80	40	3	45	22.5
4	60	30	4	30	15
5	40	20	5	20	10
6	20	10	6	15	7.5

P = $ 2 , Dr. Pepper cans demanded = 2 (Utility is maximized where MU/P (Pie) = MU/P (Dr. Pepper) = 30)

Slices of Pie	MU	MU/P	Cans of Dr. Pepper	MU	MU/P
0			0
1	120	60	1	120	30
2	100	50	2	60	15
3	80	40	3	45	11.25
4	60	30	4	30	7.5
5	40	20	5	20	5
6	20	10	6	15	3.75

P = $ 4 , Dr. Pepper cans demanded = 1 (Utility is maximized where MU/P (Pie) = MU/P (Dr. Pepper) = 30)

Dr. Pepper demand 4.5 3.5 2.5 -A Dr. Pepper demand 1.5 0.5 0.5 1.5 2.5 Quantity