Good X:_____ units Good Y: _____ units b. Suppose that the budgented amount falls to $5. This consumer would buy: ____ units of Good X and ____ units of good Y.
Good X:_____ units Good Y: _____ units b. Suppose that the budgented amount falls to $5. This consumer would buy: ____ units of Good X and ____ units of good Y.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
What combination of goods will this rational consumer purchase?
Good X:_____ units
Good Y: _____ units
b. Suppose that the budgented amount falls to $5. This consumer would buy:
____ units of Good X and
____ units of good Y.
Transcribed Image Text:Given the following diagram:
Diminishing Marginal Utility
TOTAL AND MARGINAL UTILITY
Reset
UTILITY CALCULATIONS
Total Utility
Total
Quantity
Consumed
Marginal
Utility
70
Utility
60
50
22
40
1.
22
30
18
20
2
40
10
14
54
1
2
4
5
7
Quantity Consumed
10
Marginal Utility
64
20
10
5
70
1
2 3
4
5 6
-10
72
-2
-20
7
70
Quantity Consumed
-6
Quantity Consumed
64
1
2
3
6
7
8
6.
2.
3.
4.
5.
3.
![a) A consumer has budgeted $10 for two goods X and Y. Both of these goods have the same utility function shown above.
If the price of good X (Px) is equal to $1 and the price of good Y (Py) is $2, what combination of goods will this rational consumer
purchase?
Good X:
]unit(s)
unit(s)
Good Y:
b) Suppose that the budgeted amount falls to $5. This consumer would buy:
|units of Good X and
units of Good Y.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2731a74b-0add-4fc5-b627-4c578fe40a02%2F2bab583e-c0d2-4222-96ab-c83608e233f1%2F34mcb2u_processed.png&w=3840&q=75)
Transcribed Image Text:a) A consumer has budgeted $10 for two goods X and Y. Both of these goods have the same utility function shown above.
If the price of good X (Px) is equal to $1 and the price of good Y (Py) is $2, what combination of goods will this rational consumer
purchase?
Good X:
]unit(s)
unit(s)
Good Y:
b) Suppose that the budgeted amount falls to $5. This consumer would buy:
|units of Good X and
units of Good Y.
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