Final answer:
To determine the additional utils needed from strawberry ice cream to be indifferent between it and chocolate ice cream, one must compare their marginal utility per dollar. As chocolate provides 10 utils per $1, strawberry, at $1.50 per cone, must offer 15 utils. Thus, 5 additional utils are needed from strawberry ice cream to make them equivalent in satisfaction per dollar.
Step-by-step explanation:
The question at hand involves calculating the additional utils needed from eating strawberry ice cream to be indifferent between purchasing strawberry and chocolate ice cream. We are provided with the price and the utility received from eating chocolate ice cream. To solve this problem, we compare the marginal utility per dollar for both chocolate and strawberry ice cream.
Since we receive 10 utils from eating chocolate ice cream and it costs $1.00 per cone, we start with a ratio of 10 utils per $1.00 for chocolate, which results in 10 utils per dollar. Now, for strawberry ice cream, which costs $1.50 per cone, the strawberry ice cream would need to give us enough additional utils to make the utils per dollar equal to that of the chocolate ice cream.
First, we must determine the utility per dollar for chocolate ice cream:
Chocolate utility per dollar = Utils received from chocolate ÷ Cost of chocolate = 10 utils ÷ $1.00 = 10 utils per dollar.
To match this utility per dollar, strawberry must also yield 10 utils per dollar. Therefore, we set up the equation:
Strawberry utility per dollar = (10 utils + Additional utils) ÷ $1.50.
We set the strawberry utility per dollar equal to 10 and solve for the Additional utils:
10 = (10 utils + Additional utils) ÷ $1.50
10 × $1.50 = 10 utils + Additional utils
15 utils = 10 utils + Additional utils
Additional utils = 15 utils - 10 utils
Additional utils = 5 utils
You would therefore need 5 additional utils from eating strawberry ice cream to be indifferent between the two flavors based on their costs and satisfaction derived.