Bananas Apples -The Table Above Gives Sam's Marginal Utility Schedule for Bananas

question 138

Essay

Bananas Apples

-The table above gives Sam's marginal utility schedule for bananas and apples. Sam's fruit budget is $10.
a) If bananas cost $1 per pound and apples cost $2 per bag, what is Sam's marginal utility per dollar for all quantities of both goods?
b) What is the utility maximizing combination of bananas and apples for Sam?
c) If the price of bananas increases to $2 per pound, how does Sam's marginal utility per dollar for bananas change?
d) At the banana price of $2 per pound, what is the new utility maximizing combination of bananas and apples for Sam?
e) List two points on Sam's demand curve for bananas.

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Definitions:

Limiting Factor

An environmental condition that limits the growth, abundance, or distribution of an organism or a population of organisms in an ecosystem.

Ecological Region

A geographically distinct area with characteristic flora, fauna, and environmental conditions, often defined by natural boundaries.

Specific Species

A specific species is a distinct type of organism identified by unique characteristics separating it from other organisms, often used in the context of conservation, study, or management.

Chemosynthesis

The biological conversion of one or more carbon-containing molecules and nutrients into organic matter using the oxidation of inorganic compounds as a source of energy, without the need for sunlight.