Suppose a consumer has the utility structure of weekly tea and coffee consumption shown in the following table.

$\begin{array}{|c|c|c|}
\hline \text { Cup } & \begin{array}{c}
\text { Marginal Utility } \
\text { of Tea }
\end{array} & \begin{array}{c}
\text { Marginal Utility } \
\text { of Coffee }
\end{array} \
\hline 1 & 12 & 24 \
\hline 2 & 10 & 22 \
\hline 3 & 9 & 14 \
\hline 4 & 7 & 10 \
\hline 5 & 6 & 6 \
\hline 6 & 5 & 2 \
\hline
\end{array}$
If the price of a cup of tea is $1 and the price of a cup of coffee is $2, how many of each would the consumer purchase if the consumer had $10 to spend? What is the total utility level at the optimal consumption mix?

Question

Suppose a consumer has the utility structure of weekly tea and coffee consumption shown in the following table.
​
 $\begin{array}{|c|c|c|}
\hline \text { Cup } & \begin{array}{c}
\text { Marginal Utility } \
\text { of Tea }
\end{array} & \begin{array}{c}
\text { Marginal Utility } \
\text { of Coffee }
\end{array} \
\hline 1 & 12 & 24 \
\hline 2 & 10 & 22 \
\hline 3 & 9 & 14 \
\hline 4 & 7 & 10 \
\hline 5 & 6 & 6 \
\hline 6 & 5 & 2 \
\hline
\end{array}$ ​
If the price of a cup of tea is $1 and the price of a cup of coffee is $2, how many of each would the consumer purchase if the consumer had $10 to spend? What is the total utility level at the optimal consumption mix?

Quizplus · Accepted Answer

The Answer of Suppose a consumer has the utility structure of weekly tea and coffee consumption shown in the following table.
​
 $\begin{array}{|c|c|c|}
\hline \text { Cup } & \begin{array}{c}
\text { Marginal Utility } \
\text { of Tea }
\end{array} & \begin{array}{c}
\text { Marginal Utility } \
\text { of Coffee }
\end{array} \
\hline 1 & 12 & 24 \
\hline 2 & 10 & 22 \
\hline 3 & 9 & 14 \
\hline 4 & 7 & 10 \
\hline 5 & 6 & 6 \
\hline 6 & 5 & 2 \
\hline
\end{array}$ ​
If the price of a cup of tea is $1 and the price of a cup of coffee is $2, how many of each would the consumer purchase if the consumer had $10 to spend? What is the total utility level at the optimal consumption mix?

Suppose a Consumer Has the Utility Structure of Weekly Tea