Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
Related questions
Question
- A consumer finds only three products, X, Y, and Z, are for sale. The amount of utility which their consumption will yield is shown in the table below. Assume that the prices of X, Y, and Z are $10, $2, and $8, respectively, and that the consumer has an income of $74 to spend.
Product X |
|
Product Y |
|
Product Z |
||||||
|
Quantity |
Utility |
Marginal Utility per $ |
|
Quantity |
Utility |
Marginal Utility per $ |
|
Quantity |
Utility |
Marginal Utility per $ |
|
1 |
42 |
_____ |
|
1 |
14 |
_____ |
|
1 |
32 |
_____ |
|
2 |
82 |
_____ |
|
2 |
26 |
_____ |
|
2 |
60 |
_____ |
|
3 |
118 |
_____ |
|
3 |
36 |
_____ |
|
3 |
84 |
_____ |
|
4 |
148 |
_____ |
|
4 |
44 |
_____ |
|
4 |
100 |
_____ |
|
5 |
170 |
_____ |
|
5 |
50 |
_____ |
|
5 |
110 |
_____ |
|
6 |
182 |
_____ |
|
6 |
54 |
_____ |
|
6 |
116 |
_____ |
|
7 |
182 |
_____ |
|
7 |
56.4 |
_____ |
|
7 |
120 |
_____ |
(a)Complete the table by computing the marginal utility per dollar for successive units of X, Y, and Z to one or two decimal places.
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