College Board AP Classroom
Unit 1 Progress Check: FRQ
The table below shows the marginal utilities in utils that Sarah derives from consuming two goods, snacks, and movies.
Quantity of Snacks
Marginal Utility of Snacks
Quantity of Movies
Marginal Utility
of Movies
0
0
1
20
1
50
2
18
2
35
3
15
3
24
4
12
4
20
5
10
5
15
6
8
6
10
Sarah has a limited weekly income of $50, and she spends it all on snacks and movies. Assume the price of snacks is $5 per unit, the price of a movie ticket is $10, and S
maximizing consumer.
(a) Would Sarah be able to consume 3 snacks and 5 movies? Explain.
(b) How many snacks and movies will Sarah consume to maximize her utility? Explain.
(c) Calculate the total utility Sarah will receive from consuming the utility-maximizing combination of snacks and movies indicated in your answer in part (a). Show your
(d) Suppose Sarah's income increases to $60.
(0) What will happen to the marginal utility per dollar spent on movies?
Will Sarah be better off huvia two more nacke or one more movie ticket2 Evolain
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Bi
e