Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer Use the following to answer questions (1) - (4): Aailyah is very fond of two local foods, namely Mchemsho (labeled M) and Ugali

please answer

image text in transcribed
Use the following to answer questions (1) - (4): Aailyah is very fond of two local foods, namely Mchemsho (labeled M) and Ugali (labeled U). Indeed, these are the only two goods she consumes. Further, suppose the price of Mchemsho is $4, the price of Ugali is $2, and Aailyah's income equals $20. The marginal utilities (MU) associated with various quantities of each good are provided in the table below: Mchemsho Ugali Quantity of M MU of M Quantity of U MU of U 32 24 N 28 N 20 W 24 w 16 A A 20 12 S 16 5 8 [1] The overall total utility (TU) from consuming 5 units of Mchemsho and 3 units of Ugali equals: A. 180 utils B. 150 utils C. 120 utils D. None of the above [2] Given her income and the prices of each good, Aailyah can afford to buy 2 units of M and 5 units of U. A. True B. False [3] The law of diminishing marginal utility applies to Mchemsho but not Ugali. A. True B. False (4] Wishing to maximize her overall total utility, subject to her budget constraint, Aailyah will consume units of Mchemsho and units of Ugali. A. 5:0 B. 1: 3 C. 3: 4 D. 4: 2

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

International Political Economy

Authors: Thomas Oatley

6th Edition

1138490741, 9781138490741

More Books

Students also viewed these Economics questions

Question

3. Im trying to point out what we need to do to make this happen

Answered: 1 week ago

Question

1. I try to create an image of the message

Answered: 1 week ago