QUESTION

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Suppose that Skeeter consumes tulips and pizzas. The price of tulips is $\$ 5$ per unit and the price of pizzas is $\$ 10$ per unit. The table shows Skeeter's utility from the consumption of each good; each row represents a possible consumption bundle. Currently, Skeeter is consuming 18 tulips and 9 pizzas. \begin{tabular}{|c|c|c|c|} \hline $\begin{array}{c}\text { Quantity of } \\ \text { tulips }\end{array}$ & $\begin{array}{c}\text { Utility of } \\ \text { tulips (utils) }\end{array}$ & $\begin{array}{c}\text { Q of } \\ \text { pizzas }\end{array}$ & $\begin{array}{c}\text { Utility of } \\ \text { pizzas (utils) }\end{array}$ \\ \hline 10 & 50.00 & 13 & 230.00 \\ \hline 12 & 68.30 & 12 & 213.00 \\ \hline 14 & 81.00 & 11 & 198.00 \\ \hline 16 & 89.00 & 10 & 185.00 \\ \hline 18 & 93.70 & 9 & 174.00 \\ \hline 20 & 96.40 & 8 & 165.00 \\ \hline 22 & 97.74 & 7 & 158.00 \\ \hline 24 & 98.20 & 6 & 153.00 \\ \hline 26 & 98.56 & 5 & 150.00 \\ \hline \end{tabular} Calculate the marginal utility per dollar of going from eight to nine pizzas.
To increase total utility without increasing spending, should Skeeter change the amount of consumption of either good? No, Skeeter is already consuming at the optimal consumption bundle. Yes, Skeeter should choose more tulips and more pizzas. Yes, Skeeter should choose fewer tulips and more pizzas. Yes, Skeeter should choose more tulips and fewer pizzas. What is the total utility at the optimal consumption bundle?

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