Total Utility from consumption of Pizza and ice-
cream
Scoops of Ice-
Slices of
Pizzas
Consumed
0
1
2
3
4
5
Total
Utility
0
50
95
135
170
200
cream
Consumed
0
1
2
3
4
5
Total Utility
0
24
45
63
78
87
Refer to the above table. Suppose price of pizza is $5 per slice, and price of ice-cream is
$3 per scoop. Show all the formulas used and your calculations.
A. What is marginal utility (MU) of the 3rd slice of pizza?
B. What is marginal utility (MU) of 5th scoop of ice-cream?
C. What is the marginal utility per dollar spent on the 3rd slice of pizza?
D. What is the marginal utility per dollar spent on 5th scoop of ice-cream
E. Which of the combinations of slices of pizza and scoops of ice-cream satisfies the
following rule? How do you know?
(MU/Pp) = (MU/P;)