Question 1
Refer to the information provided in Table 6.3 below to answer the question(s) that follow.
Refer to Table 6.3. If the price of a beer is $4, the price of a dozen oysters is $12, and Tyler has $28 of income, Tyler's utility-maximizing combination of beers and oysters per day is
◦ 1 beer and 2 dozen oysters.
◦ 4 beers and 1 dozen oysters.
◦ 3 beers and 1.5 dozen oysters.
◦ indeterminate from this information.
Question 2
Refer to the information provided in Table 6.3 below to answer the question(s) that follow.
Refer to Table 6.3. Assume that a store is giving oysters and beers away for free. Consumers can have as many beers and oysters (by the dozen) as they want, but the food has to be consumed one unit at a time. If Tyler has already had one beer and two dozen oysters, then Tyler should
◦ next consume a beer to maximize his utility.
◦ next consume a dozen oysters to maximize his utility.
◦ be indifferent between consuming the second beer or the third dozen oysters.
◦ consume neither another beer nor another dozen oysters to maximize his utility.
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