Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. 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 $56 and the prices of J and K are $16 and $8 respectively, the consumer will maximize her utility by purchasing: a. 2 units of J and 3 units of K. b. 4 units of J and 5 units of K. c. 6 units of J and 3 units of K. d. 5 units of J and 5 units of K.
Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K. 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 $56 and the prices of J and K are $16 and $8 respectively, the consumer will maximize her utility by purchasing: a. 2 units of J and 3 units of K. b. 4 units of J and 5 units of K. c. 6 units of J and 3 units of K. d. 5 units of J and 5 units of K.
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 $56 and the
a. 2 units of J and 3 units of K.
b. 4 units of J and 5 units of K.
c. 6 units of J and 3 units of K.
d. 5 units of J and 5 units of K.
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