Name: Althea E.

Martinez Score: ______________

Course/Yr./Sec.: BSAIS 1-A Date: October 5, 2021

kkkkPRoblem P
Problem Solving: Answer letters A to D

David D. Magpantay is an ardent basketball fan. The following tables shown the relation between the number of
games he attends per month during the season and the total utility he derives from basketball game consumption.

Number of Basketball Games per Month Total Utility

0 0
1 50
2 90
3 120
4 140
5 150

A. Construct a table showing David’s marginal utility derived from basketball game consumption.

Number of Basketball Games per Month Total Utility Marginal Utility

0 0 -
1 50 50
2 90 40
3 120 30
4 140 20
5 150 10

B. At an average ticket price of 25, David can justify attending only one game per month. Calculate David
cost per unit of marginal utility derived from basketball game consumption at this activity level.

Per month at one basketball game marginal utility is 50,

MU = 50

P/MU = 25 / 50

= 0.50 0r 50 per utility

C. If the cost/ marginal utility trade-off found in part B represents the most David is willing to pay for
basketball game consumption, calculate the prices at which he would attend two, three, four, and five
games per month.

Number of Basketball Games per Total Utility Marginal Utility Maximum Acceptable
Month MU= MU/MG Price at 50 per MU
0 0 - -
1 50 50 P25.00
2 90 40 P20.00
3 120 30 P15.00
4 140 20 P10.00
5 150 10 P5.00
D. Plot David’s basketball game demand curve.

David’s Basketball Ticket Demand Curve

35

30
Demand Curve
25

20

15

10

0
0 1 2 3 4 5

Number of Games