Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8 If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing
Units of J MUj Units of K MUk 1 56 1 32 2 48 2 28 3 32 3 24 4 24 4 20 5 20 5 12 6 16 6 10 7 12 7 8 If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing
Chapter21: Demand: Consumer Choic
Section: Chapter Questions
Problem 1E
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Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (
Units of J | MUj | Units of K | MUk |
---|---|---|---|
1 | 56 | 1 | 32 |
2 | 48 | 2 | 28 |
3 | 32 | 3 | 24 |
4 | 24 | 4 | 20 |
5 | 20 | 5 | 12 |
6 | 16 | 6 | 10 |
7 | 12 | 7 | 8 |
If the consumer has money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing
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