"Question 3 (Consumer Choice )"Answer the following questions:a. Suppose shawarma cost $2 and briyani rice cost $3. If the marginal utility of shawarma at the optimalmix of consumption is 10 utils, what is the marginal utility of a briyani rice?b. Under what conditions can sellers engage in price discrimination? Give an example of pricediscrimination."Answer"

a) In a two goods case, optimality is attained when marginal utility per dollar of both the goods…

"Question 3 (Consumer Choice )" Answer the following questions: a. Suppose shawarma cost $2 and briyani rice cost $3. If the marginal utility of shawarma at the optima mix of consumption is 10 utils, what is the marginal utility of a briyani rice? b. Under what conditions can sellers engage in price discrimination? Give an example of price discrimination.

"Question 3 (Consumer Choice )" Answer the following questions: a. Suppose shawarma cost $2 and briyani rice cost $3. If the marginal utility of shawarma at the optima mix of consumption is 10 utils, what is the marginal utility of a briyani rice? b. Under what conditions can sellers engage in price discrimination? Give an example of price discrimination.

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter7: Demand And Supply

Section: Chapter Questions

Problem 1AA

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