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1. How should you allocate your $10 between wings and sandwiches so as to achieve maximum utility? 2. Verify that the marginal utility per dollar of each good is the same at the utility maximizing bundle. 3. Suppose the price of sandwiches falls to $2. By comparing the marginal utility per dollar of your current purchases of wings and sandwiches, should you purchase more sandwiches, more wings, or does your current bundle still maximize your utility? 4. Assuming you still allocate $10 between the two goods, what amounts of wings and sandwiches maximize your utility at these new prices? 5. From the exercises above, list two price/quantity combinations that lie on your demand curve for wings.
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