APPLIED PROBLEMS 1. Bridget has a limited income and consumes only wine and cheese; her current consumption choice four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget’s utility, while the last pound of cheese added 40 units. ‘ 4. Is Bridget making the utiity-maximizing choice? Why or why not? . Tf not, what should she do instead? Why? 2. Suppose Billis on a low-carbohydrate diet. He can eat only three foods: Rice Krispies, cottage cheese, and popcorn. The marginal utilities for each food are tabulated below. Bll is allowed only 167 grams of carbohydrates daily. Rice Krispies, cottage cheese, and popcorn provide 25, 6, and 10 grams of carbohy- Arates per cup, respectively. Referring to the accompanying table, respond to the following questions,Units of food Marginal utility {cups/day) cof Rice Krispies 175 150 125 100 75 50 25 Marginal uty ofc 72 6 co 54 48 36 30 cheese Theory of Consumer Behavior 189 Merginal ty 90 80 70 60 50 40 30 20 25 18 —— 4. Given that Bill can consume only 167 grams of carbohydrates daily, how many cups of each food will he consume daily? Show your work. '. Suppose Bill’s doctor tells him to further reduce his carbohy. combination will he consume? gga ill TIES yi. ‘drate intake to 126 grams per day. What