Question

Suppose the table below represents the Marginal Utility a consumer derives during a month from attending swing and salsa social dance events. Swing events costs $10 each and salsa costs $12 each. How many of each dance option per month would the consumer meet his or her consumer equilibrium (optimal choice)

Quantity of Swing per Month	Quantity of Salsa per Month	Marginal Utility of Swing	Marginal Utility of Salsa
1	2	14	18
2	3	27	26
3	5	60	75
5	6	100	120
6	5	120	110
8	9	145	150

Answer 1

let X= Swing L Y = Salse P = 10 ly = 12 At optimal choice, 1 = (1-2 mUse a muy 1-2 mUx = muy is satisfied when the consumer attends 5 swing events and 6 Salsa events. & his obtimal choice is to attend 5 swing events & G salsa events