Final answer:
The marginal utility per last dollar spent on movies and hamburgers will be equal in equilibrium, and they can be calculated by dividing the change in utility by the change in expenditure for each good.
Step-by-step explanation:
The marginal utility per last dollar spent on movies and hamburgers can be calculated by dividing the change in utility by the change in expenditure for each good. Since the consumer is in equilibrium, the marginal utility per last dollar spent on both movies and hamburgers will be equal.
Let's calculate the marginal utility per last dollar spent on movies: If the price of a movie is $5 and the consumer's income is $29, the consumer can buy a maximum of 5 movies (5 x $5 = $25) without exceeding their income.
The marginal utility per last dollar spent on movies will be the change in utility divided by the change in expenditure. In this case, the change in utility is the utility obtained from consuming 5 movies minus the utility obtained from consuming 4 movies, and the change in expenditure is $5.
Similarly, we can calculate the marginal utility per last dollar spent on hamburgers using the same method. Since the price of a hamburger is $2, the consumer can buy a maximum of 14 hamburgers (14 x $2 = $28) without exceeding their income.
Again, we calculate the change in utility and the change in expenditure to find the marginal utility per last dollar spent on hamburgers.
By performing these calculations, we can determine the marginal utility per last dollar spent on both movies and hamburgers, which will be equal in equilibrium.