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Princess Emu has a $140 weekly allowance to spend on sparkly headbands and dresses. The price of a sparkly headband is $20 and the price of a dress...
Princess Emu has a $140 weekly allowance to spend on sparkly headbands and dresses. The price of a sparkly headband is $20 and the price of a dress is $40. Use the table below to answer the following 3 questions. Her utility from headbands and dresses is below.(Table is attached)35. What is her marginal utility per dollar spent on the 4th headband? 36. Given her $140 income, to maximize her utility Princess Emu should purchase _______ headbands and ______ dresses.37. Assume headbands and dresses are normal goods. If the price of headbands increases, the income effect of the price change would lead Princess Emu to purchase _________ headbands, and the substitution effect of the price change would lead Princess Emu to purchase __________ headbands.a. More; more b. Fewer; fewer c. More; lessd. Fewer; more