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Question: alyssa has a 25 cosmetics budget that she uses to...

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Alyssa has a $25 cosmetics budget that she uses to buy nail polish and lipstick. Assume the price of nail polish (PN) is fixed at $5. Table A shows Alyssa's marginal utility (MU) and marginal utility per dollar (MUP) she receives from the first through fifth bottles of nail polish she buys each month. Table B shows the same information for lipstick when the price of a tube of lipstick (PL) is either $10 or $5. Assume that Alyssa is a rational consumer who wants to maximize her utility.

Alyssa has a $25 cosmetics budget that she uses to buy nail polish and lipstick. Assume the price of nail polish (P) is fixed at $5. Table A shows Alyssas marginal utility (MU) and merginal utility per dollar (뿌) she receives from the first through fifth bottles of nail polish she buys each month. Table B shows the same intormation for lipstick when the price of a tube of lipstick (PL) is either $10 or $5. Assume that Alyssa is a rational consumer who wants to maximize her utility Table A Nail Polish MU MU/P (Bottles) (Utils) (if P=5) 75 15 12 35 15 Table B MU/P Lipstick MU (Tubes) (Utils) Ir P-$10) IrP-$5) 10010 80 50 20 16 10

If the price of a tube of lipstick is s10, the price of a bottle of nail polish is $5, and Alyssa spends her entire budget of 25, she will choose to of nail polish and of lipstick Now, suppose that lipstick goes on sale, and its price decreases to $5. Alyssas utility is now maximized if she buys of nail polish and of lipstick. Suppose the price of nail polish is fixed at s5, and Alyssas budget is fixed at $25 On the graph, use the blue ine (circie symbois) to plot Alyssas demand for Wpstick. Do this by placing one blue point (circie symbol) on Alyssas demand for lipstick when the prnce is $10 and the second blue point on Alyssas demand for lipstick when the price is $5. 15 Alyssas Demand QUANTITY (Tubes of lipstick)

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