Question

Take a look at Table 20-1. Suppose that the price of each digital app rises to \( 5.97. At the same time, the price of each portable power bank falls to \) 2.70. Income remains unchanged at $ 26. Rework the marginal-utility-per-dollars-spent columns and round each amount to the nearest one-tenth. What are the quantities of digital apps and portable power banks now purchased by this consumer?

Short answer

the quantities of digital apps and portable power banks now purchased by this consumer are$3units$

Step-by-step solution

Given Information

price of each digital app rises to$\$5.97$

price of each portable power bank falls $\$2.70$

Income is$\$26$

Explanation

We know,$\text{Marginal Utility}=\frac{\text{Change in No. of Units Consumed}\left(\mathrm{\Delta }TU\right)}{\text{Change in Total Utility}\left(\mathrm{\Delta }Q\right)}$

Hence from the table, we can infer that the quantities of digital apps and portable power banks now purchased by this consumer are$3units.$