Complete the tableAssumptions:• There are 2 products, X and Y● The price of X is $2• The price of Y is $1●Your budget constraint is $9How many units of X will you buy?How units of Y will you buy?5 unitsmany48What will be your maximum total utility?Note: remember as you make your choices of how many of each unit to buy, always choose theunit with the highest marginal utility per dollar... or units of X & Y may have the samemarginal utility per dollarUnitsBuy 1st 3 units of Y... they have highest MU/S (S3)Buy unit I of X and unit 4 of Y... they have the same MU/S ($3)Buy unit 2 of X and unit 5 of Y... they have the same MU/S ($3)You have spent $9 on 2 units of X and 5 units of YYour Total Utility - #1 of X (10)+#2 of X (8)+#1 of Y (8) + #2 of Y (7)+#3 of Y (6) + #4 ofY (5) #5 of Y (4) 482 unitsPage 2 of 2you have spent$3$6$9 units Totalof X Utility12346101824283133Marginal MUUtilityper $10864325421.50UnitsTotalof Y Utility12345681521263033MarginalUtility876543MUper $87654

The total satisfaction a consumer gets by consuming a product is referred to as total utility.…

Complete the table Assumptions: . There are 2 products, X and Y ● The price of X is $2 The price of Y is $1 . 2 units 5 units • Your budget constraint is $9 How many units of X will you buy? How many units of Y will you buy? What will be your maximum total utility? Note: remember as you make your choices of how many of each unit to buy, always choose the unit with the highest marginal utility per dollar... or units of X & Y may have the same marginal utility per dollar 48 Units Buy 1 3 units of Y they have highest MU/S (S3) Buy unit 1 of X and unit 4 of Y... they have the same MU/S ($3) Buy unit 2 of X and unit 5 of Y... they have the same MU/S ($3) You have spent $9 on 2 units of X and 5 units of Y Your Total Utility-#1 of X (10)+#2 of X (8)+#1 of Y (8)+#2 of Y (7) +#3 of Y (6) + #4 of Y (5) #5 of Y (4)-48 you have spent $3 $6 $9

Complete the table Assumptions: . There are 2 products, X and Y ● The price of X is $2 The price of Y is $1 . 2 units 5 units • Your budget constraint is $9 How many units of X will you buy? How many units of Y will you buy? What will be your maximum total utility? Note: remember as you make your choices of how many of each unit to buy, always choose the unit with the highest marginal utility per dollar... or units of X & Y may have the same marginal utility per dollar 48 Units Buy 1 3 units of Y they have highest MU/S (S3) Buy unit 1 of X and unit 4 of Y... they have the same MU/S ($3) Buy unit 2 of X and unit 5 of Y... they have the same MU/S ($3) You have spent $9 on 2 units of X and 5 units of Y Your Total Utility-#1 of X (10)+#2 of X (8)+#1 of Y (8)+#2 of Y (7) +#3 of Y (6) + #4 of Y (5) #5 of Y (4)-48 you have spent $3 $6 $9

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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