Arnie Ziffel has $20 per week to spend on any combination of pineapples and green tea. The price of a pineapple is $4 and the price of a bottle of green tea is $2. The table below shows Arnie's utility values. Use the table to answer the questions that follow the table.
a. Complete the table by filling in the blank spaces.
b. Suppose Arnold purchases 4 pineapples and 2 bottles of green tea. Is he consuming the optimal consumption bundle? If so, explain why. If not, what combination should he buy and why?
Definitions:
Continuity
The unbroken and consistent existence or operation of something over a period of time.
Ethnic Minority
A group within a community which differs from the majority in racial, national, cultural, or religious characteristics.
Socioeconomic Status
A social standing or class of an individual or group often measured by education, income, and occupation.
Immigrants
Individuals who move from their country of origin to a new country to live permanently.
Q23: The iPod is a product without any
Q149: If by purchasing more apples and fewer
Q200: What is an economic model?
Q223: Mr. Peabody chooses to invest in companies
Q229: Refer to Figure 11-13. The lines shown
Q251: In economics, the term _ means "additional"
Q267: Which of the following is a positive
Q310: Refer to the Article Summary. The article
Q345: Refer to Table 1-1. What is Lydia's
Q404: What is a mixed economy?