Question

In Table below, sets of total utility (TU) & marginal utility (MU) are assumed for SB19 Ken who eats 3 alternative fruits: apple (A), banana (B), and corn (C) SB19 Ken has P192 to spend on these 3. Unit Price of A is P10, B is P14, & C is P18. Qty (Unit TU (MU) TU (MU) TU (MU) A P10 B P14 C P18 Qty to buy w/ 200 W C R 1 10 10 50 50 70 70 2 18 8 68 18 88 18 3 24 6 78 10 100 12 4 29 5 86 8 108 8 5 33 4 91 5 114 6 6 36 3 95 4 118 4 SUM 3. What is the (2-decimal places) marginal utility per peso of banana at quantity of 4 units 4. With budget of P192 for the 3 fruits, how much of cherry will be bought to maximize Ken's utility 

          In Table below, sets of total utility (TU) & marginal utility (MU) are assumed for
SB19 Ken who eats 3 alternative fruits: apple (A), banana (B), and corn (C)
SB19 Ken has P192 to spend on these 3. Unit Price of A is P10, B is P14, & C is P18.
Qty (Unit TU (MU) TU (MU) TU (MU)
A P10 B P14 C P18
Qty to buy w/ 200
W C R
1 10 10 50 50 70 70
2 18 8 68 18 88 18
3 24 6 78 10 100 12
4 29 5 86 8 108 8
5 33 4 91 5 114 6
6 36 3 95 4 118 4
SUM
3. What is the (2-decimal places) marginal utility per peso of banana at quantity of 4 units
4. With budget of P192 for the 3 fruits, how much of cherry will be bought to maximize Ken's utility
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In Table below, sets of total utility (TU) marginal utility (MU) are assumed for SB19 Ken who eats 3 alternative fruits: apple (A), banana (B), and corn (C) SB19 Ken has P192 to spend on these 3. Unit Price of A is P10, B is P14, C is P18. Qty (Unit TU (MU) TU (MU) TU (MU) A P10 B P14 C P18 Qty to buy w/ 200 W C R 1 10 10 50 50 70 70 2 18 8 68 18 88 18 3 24 6 78 10 100 12 4 29 5 86 8 108 8 5 33 4 91 5 114 6 6 36 3 95 4 118 4 SUM 3. What is the (2-decimal places) marginal utility per peso of banana at quantity of 4 units 4. With budget of P192 for the 3 fruits, how much of cherry will be bought to maximize Ken's utility

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Principles of Economics
Gregory Mankiw 8th Edition
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In Table below, sets of total utility (TU) & marginal utility (MU) are assumed for SB19 Ken who eats 3 alternative fruits: apple (A), banana (B), and corn (C) SB19 Ken has P192 to spend on these 3. Unit Price of A is P10, B is P14, & C is P18. What is the (2-decimal places) marginal utility per peso of banana at quantity of 4 units With budget of P192 for the 3 fruits, how much of cherry will be bought to maximize Ken's utility In Table below, sets of total utility (TU) & marginal utility (MU) are assumed for SB19 Ken who eats 3 alternative fruits: apple (A), banana (B), and corn (C) SB19 Ken has P192 to spend on these 3. Unit Price of A is P10, B is P14, & C is P18. AP10 B P14 C P18 Qty to buy w/200 Qty (Uni1 TU (MU) TU (MU) TU (MU) MU/Peso W c R 1 10 10 50 50 70 70 2 18 8 68 18 88 18 3 24 6 78 10 100 12 4 29 5 86 8 108 8 5 33 4 91 5 114 6 6 36 3 95 4 118 4 SUM 3.What is the (2-decimal places) marginal utility per peso of banana at quantity of 4 units 4. With budget of P192 for the 3 fruits, how much of cherry will be bought to maximize Ken's utility
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Transcript

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00:01 So here we're talking about consumer choice and we want to maximize, right? and we maximize by buying highest mu over p first, right? marginal utility per over price is like value per dollar, right? when you say marginal utility over price, you're thinking about how much we are getting per dollar.
00:30 So now we have prices, we know the price of oranges is equal to one, we know the price of apples is equal to one, we know the price of bananas is equal to 0 .5.
00:40 Let's start buying.
00:41 So quantity, we have oranges, or sorry, we have mu over p of oranges, we have mu over p for apples, we have mu over p for bananas, dot, dot, dot.
01:01 So for the first one, you see that the highest payoff is for oranges, right? and that costs a dollar.
01:12 So that's $1 spent.
01:15 Now, the second thing we're going to buy is the 14, right? we see there is a 14 here...
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