A. The table below gives the utility from pens and pencils. Total utility from pens Quantity of pens pencils Quantity of pencils Total utility from 1 90 1 70 2 155 120 3 200 3 150 4 225 4 165 240 5 174 6 246 6 176 If the consumer has an income of $4, pens cost $1, and pencils cost $.20, which of the combinations maximizes the consumer's utility? | (ii) consumer's total utility when he or she maximizes utility? (i) If the consumer has an income of $4, pens cost $1, and pencils cost $.20, what is the B. Distinguish between cardinal and ordinal approach and compare which approach is better to explain the concept of utility.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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A.
The table below gives the utility from pens and pencils.
Total utility from pens
Quantity of pencils Total utility from
Quantity of pens
pencils
1
90
1
70
155
2
120
3
200
3
150
4
225
4
165
5
240
174
246
6
176
If the consumer has an income of $4, pens cost $1, and pencils cost $.20, which of the
(i)
combinations maximizes the consumer's utility? |
(i1)
consumer's total utility when he or she maximizes utility?
If the consumer has an income of $4, pens cost $1, and pencils cost $.20, what is the
B. Distinguish between cardinal and ordinal approach and compare which approach is
better to explain the concept of utility.
Transcribed Image Text:A. The table below gives the utility from pens and pencils. Total utility from pens Quantity of pencils Total utility from Quantity of pens pencils 1 90 1 70 155 2 120 3 200 3 150 4 225 4 165 5 240 174 246 6 176 If the consumer has an income of $4, pens cost $1, and pencils cost $.20, which of the (i) combinations maximizes the consumer's utility? | (i1) consumer's total utility when he or she maximizes utility? If the consumer has an income of $4, pens cost $1, and pencils cost $.20, what is the B. Distinguish between cardinal and ordinal approach and compare which approach is better to explain the concept of utility.
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