Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr. Roy consumes two goods i.e Apples and Mangoes .Given the following information; Quantity is 1-5. TU - Apples is ; 0,16,28,36,40,42. MU- Apples ;

Mr. Roy consumes two goods i.e Apples and Mangoes .Given the following information;

Quantity is 1-5.

TU - Apples is ; 0,16,28,36,40,42.

MU- Apples ; no information is given.

TU - Mangoes; 0, 24, 44, 56, 64, 68.

MU- Mangoes ; no information is given.

a) draw a table completing MU- mangoes and MU apples.

b)Assuming that the price for Apples is 4 dollars and the Price for Mangoes is K 2. What combination of Apples and Mangoes will maximize Mr. Roys' utility?

c)Suppose the price for mangoes increases by 2 dollars and assuming that Mr. Roy has a budget constraint of 20 dollars . How many Apples and Mangoes will he consume?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Economics questions

Question

=+ Where would most corporations like the balance to fall?

Answered: 1 week ago