101 lecture 21 consumer choice

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101 lecture 21 consumer choice

  1. 1. Next Exam ! Exam 6 Thursday December 26 ! Chapters 18, 19, 20 and 21
  2. 2. Microeconomics Lecture 21 ! Consumer Choice
  3. 3. Key Terms ! Indifference Curves Budget Constraints Maximizing Marginal Utility per Riyal
  4. 4. What is Utility?
  5. 5. What is Utility? Happiness Satisfaction Pleasure Enjoyment
  6. 6. Remember Three Utility Principles Utility is measured in “Utils.” Utils are just for analyzing and comparing. ! Utility is subjective Different for everyone and changes all the time. ! Utility diminishes at the margin Diminishing marginal utility Goes down as you consume more.
  7. 7. ? Or
  8. 8. Marginal Utility Per Riyal !
  9. 9. Marginal Utility Per Riyal of Pizza Marginal Utility Per Riyal of Soda Versus
  10. 10. Pizza Price MU/P ÷ 20 20 5 Marginal Utility Pepsi 2 4 10
  11. 11. Pizza Price MU/P ÷ 20 20 5 Marginal Utility Pepsi 2 4 10
  12. 12. Marginal Utility 20 15 10 5 0 -5 1 2 3 4 5 6
  13. 13. Marginal Utility 20 15 10 5 0 -5 1 2 3 4 5 6
  14. 14. Marginal Utility 20 15 10 5 0 -5 1 2 3 4 5 6
  15. 15. Marginal Utility 20 15 10 5 0 -5 1 2 3 4 5 6
  16. 16. Marginal Utility 20 15 10 5 0 -5 1 2 3 4 5 6
  17. 17. Marginal Utility 20 15 10 5 0 -5 1 2 3 4 5 6
  18. 18. Marginal Utility 20 15 10 5 0 -5 1 2 3 4 5 6
  19. 19. Total Utility 60 50 40 30 20 10 0 1 2 3 4 5 6
  20. 20. Total Utility 60 50 40 30 20 10 0 1 2 3 4 5 6
  21. 21. Total Utility 60 50 40 30 20 10 0 1 2 3 4 5 6
  22. 22. Total Utility 60 50 40 30 20 10 0 1 2 3 4 5 6
  23. 23. Total Utility 60 50 40 30 20 10 0 1 2 3 4 5 6
  24. 24. Total Utility 60 50 40 30 20 10 0 1 2 3 4 5 6
  25. 25. Total Utility 60 50 40 30 20 10 0 1 2 3 4 5 6
  26. 26. Production Possibilities iPhone iPad
  27. 27. Production Possibilities 100 90 80 70 iPhone 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 iPad
  28. 28. Production Possibilities 100 90 80 70 iPhone 60 50 40 30 20 10 0 0 10 20 30 40 50 60 70 80 90 100 iPad
  29. 29. Indifference Curve
  30. 30. Indifference Curve
  31. 31. Indifference Curve
  32. 32. Indifference Curve 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10
  33. 33. Indifference Curve 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10
  34. 34. Indifference Curve 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Just as happy anywhere on the curve 0 1 2 3 4 5 6 7 8 9 10
  35. 35. Indifference Curve 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Just as happy anywhere on the curve 0 1 2 3 4 5 6 7 8 9 10
  36. 36. Indifference Curve 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Just as happy anywhere on the curve 0 1 2 3 4 5 6 7 8 9 10
  37. 37. Budget Constraint
  38. 38. Budget Constraint
  39. 39. Budget Constraint 2
  40. 40. Budget Constraint 2
  41. 41. Budget Constraint 2 5
  42. 42. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 5
  43. 43. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  44. 44. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  45. 45. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  46. 46. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  47. 47. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  48. 48. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Still have money 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  49. 49. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Still have money 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  50. 50. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Don’t have enough money Still have money 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  51. 51. Budget Constraint and Indifference Curve
  52. 52. Budget Constraint and Indifference Curve
  53. 53. Budget Constraint and Indifference Curve 2
  54. 54. Budget Constraint and Indifference Curve 2
  55. 55. Budget Constraint and Indifference Curve 2 5
  56. 56. Budget Constraint and Indifference Curve 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 8 9 10 5
  57. 57. Budget Constraint and Indifference Curve 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  58. 58. Budget Constraint and Indifference Curve 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  59. 59. Budget Constraint and Indifference Curve 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  60. 60. Budget Constraint and Indifference Curve 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  61. 61. Budget Constraint and Indifference Curve 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  62. 62. 2 Budget Constraint and Indifference Curve Where does the budget constraint curve touch the highest indifference curve? 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  63. 63. 2 Budget Constraint and Indifference Curve Where does the budget constraint curve touch the highest indifference curve? 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  64. 64. 2 Budget Constraint and Indifference Curve Where does the budget constraint curve touch the highest indifference curve? 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 7 8 9 10 5
  65. 65. Slices 1 2 3 4 5 6
  66. 66. Marginal Slices Utility 1 20 2 16 3 10 4 6 5 2 6 -3
  67. 67. Marginal Total Slices Utility Utility 1 20 20 2 16 36 3 10 46 4 6 52 5 2 54 6 -3 51
  68. 68. Price Per Slice 5 Marginal Marginal Total Utility Slices Utility Utility Per Riyal 1 20 20 4.0 2 16 36 3.2 3 10 46 2.0 4 6 52 1.2 5 2 54 0.4 6 -3 51 -0.6
  69. 69. Price Per Slice 5 Marginal Marginal Total Utility Total Slices Utility Utility Per Riyal Costs 1 20 20 4.0 5 2 16 36 3.2 10 3 10 46 2.0 15 4 6 52 1.2 20 5 2 54 0.4 25 6 -3 51 -0.6 30
  70. 70. Equal Marginal Utility Per Riyal ! MU1 MU2 = P1 P2 Spending on 1 + Spending on 2 ≤ Budget
  71. 71. Slices 1 2 3 4 5 6
  72. 72. Marginal Slices Utility 1 20 2 16 3 10 4 6 5 2 6 -3
  73. 73. Marginal Total Slices Utility Utility 1 20 20 2 16 36 3 10 46 4 6 52 5 2 54 6 -3 51
  74. 74. Per Slice 5 Marginal Marginal Total Utility Slices Utility Utility Per Riyal 1 20 20 4.0 2 16 36 3.2 3 10 46 2.0 4 6 52 1.2 5 2 54 0.4 6 -3 51 -0.6
  75. 75. Per Slice 5 Marginal Marginal Total Utility Total Slices Utility Utility Per Riyal Costs 1 20 20 4.0 5 2 16 36 3.2 10 3 10 46 2.0 15 4 6 52 1.2 20 5 2 54 0.4 25 6 -3 51 -0.6 30
  76. 76. Per Slice 5 Marginal Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans 1 20 20 4.0 5 1 2 16 36 3.2 10 2 3 10 46 2.0 15 3 4 6 52 1.2 20 4 5 2 54 0.4 25 5 6 -3 51 -0.6 30 6
  77. 77. Per Slice 5 Marginal Marginal Total Utility Total Marginal Slices Utility Utility Per Riyal Costs Cans Utility 1 20 20 4.0 5 1 20 2 16 36 3.2 10 2 15 3 10 46 2.0 15 3 10 4 6 52 1.2 20 4 5 5 2 54 0.4 25 5 3 6 -3 51 -0.6 30 6 -1
  78. 78. Per Slice 5 Marginal Marginal Total Utility Total Marginal Total Slices Utility Utility Per Riyal Costs Cans Utility Utility 1 20 20 4.0 5 1 20 20 2 16 36 3.2 10 2 15 35 3 10 46 2.0 15 3 10 45 4 6 52 1.2 20 4 5 50 5 2 54 0.4 25 5 3 53 6 -3 51 -0.6 30 6 -1 52
  79. 79. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal 1 20 20 4.0 5 1 20 20 10.0 2 16 36 3.2 10 2 15 35 7.5 3 10 46 2.0 15 3 10 45 5.0 4 6 52 1.2 20 4 5 50 2.5 5 2 54 0.4 25 5 3 53 1.5 6 -3 51 -0.6 30 6 -1 52 -0.5
  80. 80. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12
  81. 81. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent:
  82. 82. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent:
  83. 83. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent:
  84. 84. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 2
  85. 85. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 2
  86. 86. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 2
  87. 87. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 4
  88. 88. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 4
  89. 89. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 4
  90. 90. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 6
  91. 91. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 6
  92. 92. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 6
  93. 93. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 11
  94. 94. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 11
  95. 95. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 11
  96. 96. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 16
  97. 97. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 16
  98. 98. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 16
  99. 99. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 18
  100. 100. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 18
  101. 101. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 18
  102. 102. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 23
  103. 103. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 23
  104. 104. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 23
  105. 105. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 25
  106. 106. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 25
  107. 107. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 25
  108. 108. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 30
  109. 109. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 30
  110. 110. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 30
  111. 111. Per Slice Per Can 5 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 4.0 5 1 20 20 10.0 2 2 16 36 3.2 10 2 15 35 7.5 4 3 10 46 2.0 15 3 10 45 5.0 6 4 6 52 1.2 20 4 5 50 2.5 8 5 2 54 0.4 25 5 3 53 1.5 10 6 -3 51 -0.6 30 6 -1 52 -0.5 12 Budget 30 SAR Spent: 30 Utility Maximized: 105
  112. 112. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 5 7 8 9 10
  113. 113. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 5 7 8 9 10 3
  114. 114. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 0 1 Budget of 30 2 3 4 5 6 5 7 8 9 10 3
  115. 115. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 New price will change slope of curve 0 1 Budget of 30 2 3 4 5 6 5 7 8 9 10 3
  116. 116. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 New price will change slope of curve 0 1 Budget of 30 2 3 4 5 6 5 7 8 9 10 3
  117. 117. Budget Constraint 2 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 New price will change slope of curve 0 1 Budget of 30 2 3 4 5 6 5 7 8 9 10 3
  118. 118. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12
  119. 119. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent:
  120. 120. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent:
  121. 121. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent:
  122. 122. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 2
  123. 123. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 2
  124. 124. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 2
  125. 125. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 4
  126. 126. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 4
  127. 127. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 4
  128. 128. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 7
  129. 129. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 7
  130. 130. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 7
  131. 131. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 10
  132. 132. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 10
  133. 133. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 10
  134. 134. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 12
  135. 135. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 12
  136. 136. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 12
  137. 137. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 15
  138. 138. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 15
  139. 139. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 15
  140. 140. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 17
  141. 141. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 17
  142. 142. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 17
  143. 143. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 20
  144. 144. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 20
  145. 145. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 20
  146. 146. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 22
  147. 147. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 22
  148. 148. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 22
  149. 149. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 25
  150. 150. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 25
  151. 151. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 25
  152. 152. Price Drops Per Slice Per Can 3 2 Marginal Marginal Marginal Total Utility Total Marginal Total Utility Total Slices Utility Utility Per Riyal Costs Cans Utility Utility Per Riyal Costs 1 20 20 6.7 3 1 20 20 10.0 2 2 16 36 5.3 6 2 15 35 7.5 4 3 10 46 3.3 9 3 10 45 5.0 6 4 6 52 2.0 12 4 5 50 2.5 8 5 2 54 0.7 15 5 3 53 1.5 10 6 -3 51 -1.0 18 6 -1 52 -0.5 12 Budget 30 SAR Spent: 25 Utility Maximized: 107
  153. 153. Exam 6 Review Thursday December 26 Chapters 18, 19, 20 and 21 Blog Slides and Questions 25 questions Pencil Calculator

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