(Answered) Mary enjoys classical cds and travel books and spends a75 a

Economics

Mary enjoys classical CDs and travel books and spends a75 a month on them. The following table shows the utility she gets from each good:

Quantity Utility from classical CDs Utility from travel books

1 90 120

2 110 136

3 126 148

4 138 152

5 146 154

a Draw graphs showing Mary's utility from classical CDs and from travel books.

b Compare the two utility graphs. Can you say anything about Mary's preferences?

c Draw graphs that show Mary's marginal utility from classical CDs and from travel books.

d What do the two marginal utility graphs tell you about Mary's preferences?

e If a classical CD and a travel book cost a15 each, how does Mary spend the a75 a month?

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