Assume that the price of oranges is $2 and the price of starfruit is $1. You have $10 of income to spend on both goods, and you intend to spend the entire amount. Note that MU stands for marginal utility. Q of oranges MU from oranges Q of starfruit MU of starfruit 1 $20 1 $12 2 16 2 10 3 12 3 8 4 8 4 6 5 4 5 4 6 0 6 2 To maximize total utility, you would consume _____ oranges and _____ starfruit. Question 25 options: 5; 0 4; 2 3; 4 2; 6 5; 5
Assume that the price of oranges is $2 and the price of starfruit is $1. You have $10 of income to spend on both goods, and you intend to spend the entire amount. Note that MU stands for
Q of oranges MU from oranges Q of starfruit MU of starfruit
1 $20 1 $12
2 16 2 10
3 12 3 8
4 8 4 6
5 4 5 4
6 0 6 2
To maximize total utility, you would consume _____ oranges and _____ starfruit.
Question 25 options:
|
|
5; 0 |
|
|
4; 2 |
|
|
3; 4 |
|
|
2; 6 |
|
|
5; 5 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
