Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Total Utility } \
\text { from Multiplex Tickets }
\end{array} & \begin{array} { c }
\text { T otal Utility } \
\text { from Video Rentals }
\end{array} & \begin{array} { c }
\text { Total Utility } \
\text { from Popcorn }
\end{array} \
\hline 1 \text { movie ( } 30 \text { utils) } & 1 \text { video (14 utils) } & 1 \text { bag (8 utils) } \
2 \text { movies (54 utils) } & 2 \text { videos (24 utils) } & 2 \text { bags (13 utils) } \
3 \text { movies (72 utils) } & 3 \text { videos (30 utils) } & 3 \text { bags } ( 15 \text { utils) } \
4 \text { movies (84 utils) } & 4 \text { videos (32utils) } & 4 \text { bags (16 utils) } \
\hline
\end{array}$$
-In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. Suppose the consumer has $12 per week to spend on multiplex tickets, video rentals, and popcorn. In the consumer equilibrium, what is the marginal utility per dollar for each of the three goods?
A) 5 utils per dollar.
B) 9 utils per dollar.
C) 13 utils per dollar.
D) 22 utils per dollar.

Question

Exhibit 6-4 Total utility for multiplex tickets, video rentals, and popcorn $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Total Utility } \
\text { from Multiplex Tickets }
\end{array} & \begin{array} { c } 
\text { T otal Utility } \
\text { from Video Rentals }
\end{array} & \begin{array} { c } 
\text { Total Utility } \
\text { from Popcorn }
\end{array} \
\hline 1 \text { movie ( } 30 \text { utils) } & 1 \text { video (14 utils) } & 1 \text { bag (8 utils) } \
2 \text { movies (54 utils) } & 2 \text { videos (24 utils) } & 2 \text { bags (13 utils) } \
3 \text { movies (72 utils) } & 3 \text { videos (30 utils) } & 3 \text { bags } ( 15 \text { utils) } \
4 \text { movies (84 utils) } & 4 \text { videos (32utils) } & 4 \text { bags (16 utils) } \
\hline
\end{array}$$
-In Exhibit 6-4, assume the Multiplex tickets cost $6 each, video rentals cost $2 each, and bags of popcorn cost $1 each. Suppose the consumer has $12 per week to spend on multiplex tickets, video rentals, and popcorn. In the consumer equilibrium, what is the marginal utility per dollar for each of the three goods?
A) 5 utils per dollar.
B) 9 utils per dollar.
C) 13 utils per dollar.
D) 22 utils per dollar.

Quizplus · Accepted Answer

In consumer equilibrium, the marginal utility per dollar spent on each good should be equal. The marginal utility per dollar for each good is calculated by dividing the change in total utility by the change in quantity and then dividing by the price. For each good, this results in 5 utils per dollar.

Exhibit 6-4 Total Utility for Multiplex Tickets, Video Rentals, and Popcorn