Professional Documents
Culture Documents
Units Consumed Total Utility Marginal Utility: Homework No. 4
Units Consumed Total Utility Marginal Utility: Homework No. 4
20180107
Homework no. 4
1) 1. A 6. C 11. D
2. D 7. D 12. B
3. C 8. D 13. A
4. D 9. B
5. A 10. A
2)
Units Consumed Total Utility Marginal Utility
0 0 -
1 10 10
2 18 8
3 25 7
4 30 5
5 33 3
6 34 1
3) Income = $9
Price of x = $2
Price of y = $1
Income ¿ P ( x ) ×Q ( x )+ P ( y ) ×Q ( y )
¿ ( 2 ×1 ) +(1 × 4)
=2+4=6
Income ¿ ( 2 ×3 ) +(1× 6)
= 6 + 6 = 12
So:
Buy 2 units of x and 5 units of y
Total Utility (x) = 10 + 8 + 6 + 4 + 3 + 2 = 33
Total Utility (y) = 8 + 7 + 6 + 5 + 4 + 3 = 33
2. 40 / 10 = 4 commodities
3.
A. Marginal Utility: is the additional satisfaction from consumption of one more
unit of goods or services.
B. Consumer Equilibrium: is a situation in which a person gets maximum
satisfaction.