5. After we compensate Fred by the amount we calculated in the previous questions, his new consumption of beer and brats will be:
  1. 3 brats and 5 beers.
  2. 4 brats and 4 beers.
  3. 4 brats and 5 beers.
  4. 5 brats and 4 beers.
  5. 6 brats and 3 beers.
Fred's Marginal Utility
Q MU Brats MU Beer
1 16 11
2 14 10
3 12 9
4 10 8
5 8 7
6 6 6
7 4 5
8 2 4

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