Posted by **Anonymous** on Sunday, November 30, 2008 at 1:00pm.

If the MU per dollar spent on wings is greater than the MU per dollar spent on pizza, JP will spend that dollar on wings because it adds more to his TU than if he spent it on pizza, i.e., he’ll buy more wings and less pizza. Suppose that JP was consuming so that his MUp/Pp > MUw/Pw. Consuming more pizza will ↑ his MUp and consuming fewer wings will decrease his MUw. Remember, we have diminishing MU so more of a good means lower MU, and at lower quantities the MU is higher. JP should keep consuming more pizza and fewer wings until his MUp/Pp = MUw/Pw

where he will then be maximizing his TU.

I don't understand why more of a good decreases MU since in the example, it states that eating more pizza increases MU. Can someone please clarify this part for me? Thanks.

MU = marginal utility

Pp = Price per pizza

Pw = Price per wing

MUp = marginal utility for pizza

MUw = marginal utility for wings

- Microeconomics: Consumer Theory -
**economyst**, Monday, December 1, 2008 at 8:57am
MU in consumption is (almost always) postive but declining. Make a graph, put MUz on the y-axis, put consumption of good z on the x-axis. You should graph a downward sloping relationship, but MU is always positive. That is, each additional unit (bite) of good z adds to total utility, but less than the previous bite.

I hope this helps, if not, repost.

- Microeconomics: Consumer Theory -
**GALMESSA**, Sunday, January 11, 2009 at 2:21am
CONSUMING MORE OF ONE GOOD DECREASE MU BECAUSE THE ADDIONAL SATISFACTION YOU GET DECREASE FROM CONSUMING ONE GOOD.

THANKS.

## Answer This Question

## Related Questions

- Economics - Suppose that Erin spends all of her income on two goods: pizza and ...
- Algebra ASAP!! - 7. The table shows the functions used to determine the number ...
- calculus - Use the demand function X=325(1-(6p/7p+4)) to find the rate of change...
- Microeconomics - ADVANCED ANALYSIS Assume the following values for Figures 5.4a ...
- freazer school - my mom give me 5 dollar . then i spent 2 dollar now how much i ...
- University South Carolina - A movie theater has fixed costs of dollar-sign 9000...
- math algebra - At your local bar, chicken wings cost $0.30 a piece on Thursday ...
- Geometry check my answer? - Small Pizza- radius 6 in. cost $9.75 Medium- radius...
- Economics - Given the following diagrams: Q1 = 16 bags. Q2 = 11 bags. Q3 = 23 ...
- math - the dollar card is $3 per month and 10cents per minute How much would ...

More Related Questions