Microeconomics: Consumer Theory
posted by Anonymous .
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

MU in consumption is (almost always) postive but declining. Make a graph, put MUz on the yaxis, put consumption of good z on the xaxis. 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. 
CONSUMING MORE OF ONE GOOD DECREASE MU BECAUSE THE ADDIONAL SATISFACTION YOU GET DECREASE FROM CONSUMING ONE GOOD.
THANKS.
Respond to this Question
Similar Questions

Numerical & Proportional Reasoning
Kendra traveled to Europe and Japan on a buisness trip. In europe, she exchanged 300 U.S dollars for euros and spent 100 euros. she went to Japan and exchanged her remaining euros for yen. She spent 10,000 yen while in Japan. the exchange … 
freazer school
my mom give me 5 dollar . then i spent 2 dollar now how much i have? 
Geometry check my answer?
Small Pizza radius 6 in. cost $9.75 Medium radius 8in cost $12 Largediameter 20 in cost $16.50 The edge is stuffed with cheese, and its the best part of the pizza/ What size has the most pizza edge pr dollar? 
calculus
Use the demand function X=325(1(6p/7p+4)) to find the rate of change in the demand x for the given price p=$5.00. Round your answer to two decimal places. A. 5.13 UNITS PER DOLLAR B. 0.85 UNITS PER DOLLAR C. 0.85 UNITS PER DOLLAR … 
Microeconomics
ADVANCED ANALYSIS Assume the following values for Figures 5.4a and Figures 5.4b. Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at c is $5 per bag. The … 
Algebra
Mr. Zerman went shopping. In the first store he spent half of his money plus an additional dollar. At the second store he spent half of his remaining money plus an additional dollar. This pattern continued until he left the fifth store … 
Economics
Suppose that Erin spends all of her income on two goods: pizza and fiction novels. If the price of pizza rises, then A. The current marginal utility per dollar spent on pizza will rise B. The current marginal utility per dollar spent … 
math algebra
At your local bar, chicken wings cost $0.30 a piece on Thursday night. Sriacha Ranch dressing (enough for 10 wings), cost $0.10 per serving. A pitcher of of ice tea cost $7.50 and a serving of celery cost $2.50 . Tax in your part of … 
Algebra ASAP!!
7. The table shows the functions used to determine the number of points earned every month by regular and elite members of a dining club who spend d dollars that month at participating restaurants. Which statement describes the difference … 
University South Carolina
A movie theater has fixed costs of dollarsign 9000 per day and variable costs averaging dollarsign 3 per customer. The theater charges dollarsign 12 per ticket. How many customers per day does the theater need in order to make a …