Cindy has $70 a month to spend, and she can spend as much time as she likes playing golf and tennis. The price of an hour of golf is $10, and the price of an hour of tennis is $5. The table shows Cindy's affordable combinations and the marginal utility she gets from each activity. How many hours of golf and how many hours of tennis does she play to maximize her utility? To maximize her total utility, the number of hours that Cindy spends golfing is and the number of hours she spends playing tennis is. Cindy decides to golf for 5 hours a month and play tennis for 4 hours a month. If she spends a dollar more on golf and a dollar less on tennis, how would her total utility change? Her total utility by O A. decreases; 1 unit OB. increases; 2 units OC. increases; 1 unit O D. decreases: 2 units Cindy decides to golf for 5 hours a month and play tennis for 4 hours a month. If she spends a dollar less on golf and a dollar more on tennis, how would her total utility change? Her total utility by OA. decreases; 1 unit OB. increases; 2 units O C. increases; 1 unit D. decreases; 2 units Golf ($10 per hour) Hours 4 5 6 Marginal utility 10 20 30 Tennis ($5 per hour) Marginal utility 36 10 2 Hours 2 4 6

Cindy has $70 a month to spend, and she can spend as much time as she likes playing golf and tennis. The price of an hour of golf is $10, and the price of an hour of tennis is $5. The table shows Cindy's affordable combinations and the marginal utility she gets from each activity. How many hours of golf and how many hours of tennis does she play to maximize her utility? To maximize her total utility, the number of hours that Cindy spends golfing is and the number of hours she spends playing tennis is. Cindy decides to golf for 5 hours a month and play tennis for 4 hours a month. If she spends a dollar more on golf and a dollar less on tennis, how would her total utility change? Her total utility by O A. decreases; 1 unit OB. increases; 2 units OC. increases; 1 unit O D. decreases: 2 units Cindy decides to golf for 5 hours a month and play tennis for 4 hours a month. If she spends a dollar less on golf and a dollar more on tennis, how would her total utility change? Her total utility by OA. decreases; 1 unit OB. increases; 2 units O C. increases; 1 unit D. decreases; 2 units Golf ($10 per hour) Hours 4 5 6 Marginal utility 10 20 30 Tennis ($5 per hour) Marginal utility 36 10 2 Hours 2 4 6

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 1P

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