Question

Jason enjoys rock CDs and spy novels and spends a60 a month on them. The following table shows the utility he gets from each good: Quantity Utility from Utility from per month rock CDs spy novels 1 60 20 2 110 38 3 150 53 4 180 64 5 200 70 6 206 75 a Draw graphs showing Jason’s utility from rock CDs and from spy novels. b Compare the two utility graphs. Can you say anything about Jason’s preferences?

Answer 1

let's solve it in EXCEL

a)

b)Comparing the two charts, we can say that Jason reads more rock discs, since the usefulness of consuming this product is higher