1.How Many Donuts? Using Figure 22.8 as a starting point, suppose cognition shifts the MU per dollar curve downward by a larger amount, as shown in the figure below. How many donuts and how many...

1.How Many Donuts? Using Figure 22.8 as a starting point, suppose cognition shifts the MU per dollar curve downward by a larger amount, as shown in the figure below. How many donuts and how many apples will the consumer choose?

fig. 22.8

2. Effects of a Donut Tax. Using Figure 22.8 as a starting point, consider the effect of a donut tax equal to $2 per donut, which increases the price of a donut from $1 to $3. In the figure below, assume that the new (posttax) equilibrium is shown by points e and d. Fill the blanks (shown by horizontal lines) with numbers. The marginal utility per dollar associated with point c is
utils. The number of apples associated with point d is
  .