Amadea spends all her income on pizza, chocolate milk, and music streams. The price of pizza is $4 per slice and price of chocolate milk $2 per bottle. At Amadea's current consumption level, her marginal utility for pizza is 50 units per slice and for music 100 units per stream. Assuming that Amadea is a utility maximizer, how much is (a)her current marginal utility for a bottle of chocolate milk, and (b) the price of streams she buys. Show your work. [Hint: Ch 6: Utility-maximizing formula)

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter20: Consumer Choice And Elasticity
Section: Chapter Questions
Problem 4CQ
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Amadea spends all her income on pizza,
chocolate milk, and music streams. The price of pizza is $4 per slice and price of
chocolate milk $2 per bottle. At Amadea's current consumption level, her marginal
utility
for pizza is 50 units per slice and for music 100 units per stream. Assuming that
Amadea is a utility maximizer, how much is

(a)her current marginal utility for a bottle
of chocolate milk, and

(b) the price of streams she buys. Show your work.

[Hint: Ch 6:
Utility-maximizing formula)

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