Hi I am unsure on how to fill in the marginal utility when only given the value of one of the items. could you
please explain this table. Thanks.
Suppose that your grandmother is a generous woman who spends most of her days reading books to
the local kindergarten children and helping grow vegetables at the local primary school. When she is not volunteering, she enjoys two activities: going to the movies; and eating chocolate eclairs. She has determined that she should only spend $40 a month on these two things. Let her marginal utilities of
consumption be as represented in the following table and the price of chocolate eclairs be $2. If she ever -ts the same utili from s –ndin more on movies or eclairs assume she g- s to the movies. .-—.-
—n a) Fill in the table with your grandmother’s marginal utilities for movies and eclairs. (1 mark)