QUESTION
2. Total and marginal utility Yakov enjoys drinking milk, since his mother tells him it will make him grow up strong. The following table contains information on Yakov's utility from milk each day. FN in the two missing cells of the table. On the following graph, use the purple paints (dilamands symbol) to plot Yakov's total utiity (TU) curve if he consumes zero, ane, two, three, four, five, or six glasses of milk per day. Note: Plat your points in the order in which you would like them connected. Line segments will connect the points automatically. On the following graph, use the biue points (cirde symbol) to plat Yakov's marginal utilty (MU) curve from consurning his first six glasses of mille For Yakov, increasing his consumption of milk results in marginal utility.
3. Finding consumer equilibrium Van enjoys consuming both milk and juice. Each glass of milk costs $P_{M}=\$ 1$, and each glass of juice costs $P_{J}=\$ 2$. Suppose that Van buys 300 glasses of milk and 200 glasses of juice per year. The following graphs show his marginal utility curves for milk and juice. At his current consumption level, Van's marginal utility from consuming the last glass of milk he bought is $\mathrm{MU}_{\mathrm{M}}=30$ utils per glass, and his marginal utility from consuming the last glass of juice he bought is $\mathrm{MU}_{\mathrm{J}}=30$ utils per glass. Is Van currently maximizing his utility? No; he could buy more juice and less milk, not spend any more money, and be better off. No; he likes juice and milk more than other goods, so he should buy more of both. Yes; the marginal utility he receives from his last glass of milk equals that of his last glass of juice. No; he could buy less juice and more milk, not spend any more money, and be better off. For each of the following combinations of milk and juice, calculate the marginal utility per dollar from the last glass of milk and the last glass of juice. Then, use the dropdown menus in the last column to indicate which of the combinations satisfy the condition for consumer equilibrium. Suppose Van has a "beverage budget" of \$1,355 per year, which he spends on milk and juice. To maximize his utility, Van will purchase glasses of milk and glasses of juice per year.
Public Answer
