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Peter spends his income of R700 on two goods-shirts and food. The table below shows the utility that Peter derives from these two commodities. Use the information in the table to answer questions 13 and 14. Unit TU Shirts (S) MU MUSJP TU Food (F) MU MUR/P S 0 0 0 5000 25 800 8 1 5000 800 V a W B 2 5800 1300 Y 8 C 3 6200 1700 200 Z 4 4 6400 2000 TU = Total utility; MU = Marginal utility; Ps Shirt price =R200, P=Food price = R100 13. Peter's budget equation can be represented as: A. 700F+100S = 200 B. 200S+700F = 100 200S+100F=700L D. 200F+100S=700 (2) (3)

Peter spends his income of R700 on two goods-shirts and food. The table below shows the utility that Peter derives from these two commodities. Use the information in the table to answer questions 13 and 14. Unit TU Shirts (S) MU MUSJP TU Food (F) MU MUR/P S 0 0 0 5000 25 800 8 1 5000 800 V a W B 2 5800 1300 Y 8 C 3 6200 1700 200 Z 4 4 6400 2000 TU = Total utility; MU = Marginal utility; Ps Shirt price =R200, P=Food price = R100 13. Peter's budget equation can be represented as: A. 700F+100S = 200 B. 200S+700F = 100 200S+100F=700L D. 200F+100S=700 (2) (3)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Peter spends his income of R700 on two goods-shirts and food. The table below shows the utility that Peter derives from these two commodities. Use the information in the table to answer questions 13 and 14. Unit TU Shirts (S) MU MUSJP TU Food (F) MU MUR/P S 0 0 0 5000 25 800 8 1 5000 800 V a W B 2 5800 1300 Y 8 C 3 6200 1700 200 Z 4 4 6400 2000 TU = Total utility; MU = Marginal utility; Ps Shirt price =R200, P=Food price = R100 13. Peter's budget equation can be represented as: A. 700F+100S = 200 B. 200S+700F = 100 200S+100F=700L D. 200F+100S=700 (2) (3)
Transcribed Image Text:Peter spends his income of R700 on two goods-shirts and food. The table below shows the utility that Peter derives from these two commodities. Use the information in the table to answer questions 13 and 14. Unit TU Shirts (S) MU MUSJP TU Food (F) MU MUR/P S 0 0 0 5000 25 800 8 1 5000 800 V a W B 2 5800 1300 Y 8 C 3 6200 1700 200 Z 4 4 6400 2000 TU = Total utility; MU = Marginal utility; Ps Shirt price =R200, P=Food price = R100 13. Peter's budget equation can be represented as: A. 700F+100S = 200 B. 200S+700F = 100 200S+100F=700L D. 200F+100S=700 (2) (3)
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