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A consumer, Sam, finds only three products, X, Y, and Z, are for sale. The amount of utility which his consumption will yield is shown

  1. A consumer, Sam, finds only three products, X, Y, and Z, are for sale. The amount of utility which his consumption will yield is shown in the table below. Assume that the prices of X, Y, and Z are $10, $2, and $8, respectively, and that the consumer has an income of $74 to spend.
Product XProduct YProduct Z
QuantityTotal UtilityMarginal UtilityMarginal Utility per $QuantityTotal UtilityMarginal UtilityMarginal Utility per $QuantityTotal UtilityMarginal UtilityMarginal Utility per $
142114132
282226260
3118336384
41484444100
51705505110
61826546116
7182756.47120

  1. Complete the table by computing the marginal utility per dollar for successive units of X, Y, and Z to one or two decimal places.
  2. How many units of X, Y, and Z will Sam buy when maximizing utility and spending all income? Show this result using the utility maximization formula. (Hint: Remember to use MU from the last unit sold.)
  3. X = Y = Z =
    image text in transcribed
MUZ MUY Pz MU PY Px

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