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Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. the price
Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. the price of product X is $2.50 and the price of product Y is $2 the income of the consumer is $16
Product X | Product Y | ||
---|---|---|---|
Quantity | MUX | Quantity | MUY |
1 | 32 | 1 | 24 |
2 | 28 | 2 | 20 |
3 | 24 | 3 | 16 |
4 | 20 | 4 | 12 |
5 | 16 | 5 | 8 |
if the consumer buys both product X and product Y, how much will the consumer buy each in order to maximize utlilty
A) 5X and 2Y
B) 4X and 4Y
C) 3X and 4Y
D) 4X and 3Y
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Step: 1
To solve this problem we need to utilize the concept of marginal utility per dollar spent MUP to det...
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Step: 2
Step: 3
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