Units of x
MUx
Units of y
MUy
1
23
1
18
2
16
2
16
3
12
3
14
4
8
4
10
5
4
5
8
6
2
6
4
You are choosing between two goods, X and Y, and your marginal utility from each is as shown above.
Instructions: Enter your answers as whole numbers.
a. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? X =___ units.Y =___ units.
b. What total utility will you realize? _______ .
c. Assume that other things remaining unchanged, the price of X falls to $1.00. What quantities of X and Y will you now purchase? X = __units. Y =__ units.
d. Using the two prices and quantities for X derive a demanding schedule (a table showing prices and quantities demanded) for X.
Price
Quantity demand
?
?
?
?
| Units of x | MUx | Units of y | MUy |
|---|---|---|---|
| 1 | 23 | 1 | 18 |
| 2 | 16 | 2 | 16 |
| 3 | 12 | 3 | 14 |
| 4 | 8 | 4 | 10 |
| 5 | 4 | 5 | 8 |
| 6 | 2 | 6 | 4 |
You are choosing between two goods, X and Y, and your marginal utility from each is as shown above.
Instructions: Enter your answers as whole numbers.
a. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? X =___ units.Y =___ units.
b. What total utility will you realize? _______ .
c. Assume that other things remaining unchanged, the price of X falls to $1.00. What quantities of X and Y will you now purchase? X = __units. Y =__ units.
d. Using the two prices and quantities for X derive a demanding schedule (a table showing prices and quantities demanded) for X.
| Price | Quantity demand |
| ? | ? |
| ? | ? |
Answer verification
Related textbook solutions
Related questions
| Units of X | MUx | Units of Y | MUy |
| 1 | 23 | 1 | 18 |
| 2 | 16 | 2 | 16 |
| 3 | 12 | 3 | 14 |
| 4 | 8 | 4 | 10 |
| 5 | 4 | 5 | 8 |
| 6 | 2 | 6 | 4 |
a. If your income is $9.00 and the prices of X and Y are $2.00 and $1.00, respectively, what quantities of each will you purchase to maximize utility? X = units. Y = units. b. What total utility will you realize?
c. Assume that other things remaining unchanged, the price of X falls to $1.00. What quantities of X and Y will you now purchase? X = units. Y = units.
d. Using the two prices and quantities for X derive a demand schedule (a table showing prices and quantities demanded) for X.
Given the following information: PX =$8, PY = $6; Consumer's Budget (B) = $76
|
Units of X |
TUX |
MUX |
Units of Y |
TUY |
MUY |
|
1 |
48 |
54 |
|||
|
2 |
40 |
102 |
|||
|
3 |
32 |
144 |
|||
|
4 |
24 |
174 |
|||
|
5 |
16 |
192 |
|||
|
6 |
8 |
204 |
|||
|
7 |
0 |
210 |
What combination of X and Y should the consumer buy?
What is the combined total utility from that combination of X and Y (TUX+Y)
How much the consumer spent on X and Y
