Microeconomics,, 16th Canadian Edition

Trip 1 125 250 50

Trip 2 100 200 50

Trip 3 75 150 50

Trip 4 50 100 50

Trip 5 25 50 50

a. Is Sally maximizing her total utility on each shopping
trip? Explain why or why not.
b. Using what you have learned in this chapter about
marginal utility, explain how the number of shoes
consumed is changing as their price changes.
c. Can you detect the shape of Sally’s demand curve for
shoes from the data shown in the table?
16. Both diagrams below show the income and substitution effects of
a rise in price from to In each case the substitution effect is
illustrated by the change in quantity demanded from to
the income effect is illustrated by the change in quantity
demanded from to

p 0 p 1.

Q 0 Q

Q∗ Q 1.