Question

Cookie Monster has $6 to spend on milk and cookies. The table below shows his marginal utility (MU) and marginal utility per dollar (MU per dollar) for milk when the price of a glass of milk is $1. Table 1 Milk Marginal Utility (Utils) Marginal Utility per Dollar (Utils per Dollars) (glasses) Table 2 The table below shows his marginal utility (MU) and marginal utility per dollar (MU per dollar) for cookies when the price of a box of cookies is $2. Cookies Marginal Utility (Utils) Marginal Utility per Dollar (Utils per Dollars) (Boxes)

Answer 1

Co Consumer maximize utility at the point where marginal uhlidy per deller spend in milk and marginal utility per dollar spend un Cakes Marginal whilchty per doller spend on Nilk = Marginal uhliny por donar spend un gta Coukies - 9 when consumer consume theks 2 glasses of milk and 2 butes of cukie. . he will chuse to buy a boxes of cerkies (6 when price of awokies increade to $3, then Margene) uhling por deller spend in Milk Marginal utility per dollar spend on Cookies = 8 when consumer consume 3 glastes of milk and I bux of cookies. The will chuese to buy I box of cookies 6 free of Cwere coty. Demanda of Cookies *2 2 $3 Demond Curve D, at price of $2 represents a boxes of cuckles in demanded .. and I bur of cookie is domanded at Kanan Demond Curve (Di) on the above graph would correctly represent his demand for Cukie Andur. Di