Question one: Azza has an income of 52 Rial Omani (R.O) and the price of goods X, Y, are R.O 8, and R.O 4 respectively. The amount of total utility she would derive from consuming X, and Y is shown in the Table below: Quantity Product X Product Y Total Utility MUx Total Utility MUy (TU) (TU) 56 32 104 60 136 84 4 160 104 170 116 176 126 178 134 Given the above Table, answer the following questions: 1. Calculate the marginal utility for each product 2. Write down the two conditions for consumer's equilibrium in the above case 3. Find the consumer's equilibrium and show how many units of the two products will Azza purchase? 4. If Azza's income were decreased to R.O 28, what quantity of good X and Y should be purchased to maximize her utility? 5. Derive the demand curve
Question one: Azza has an income of 52 Rial Omani (R.O) and the price of goods X, Y, are R.O 8, and R.O 4 respectively. The amount of total utility she would derive from consuming X, and Y is shown in the Table below: Quantity Product X Product Y Total Utility MUx Total Utility MUy (TU) (TU) 56 32 104 60 136 84 4 160 104 170 116 176 126 178 134 Given the above Table, answer the following questions: 1. Calculate the marginal utility for each product 2. Write down the two conditions for consumer's equilibrium in the above case 3. Find the consumer's equilibrium and show how many units of the two products will Azza purchase? 4. If Azza's income were decreased to R.O 28, what quantity of good X and Y should be purchased to maximize her utility? 5. Derive the demand curve
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question one:
Azza has an income of 52 Rial Omani (R.O) and the price
of goods X, Y, are R.O 8, and R.O 4 respectively. The
amount of total utility she would derive from consuming X,
and Y is shown in the Table below:
Quantity
Product X
Product Y
Total Utility MUx Total Utility MUy
(TU)
(TU)
56
32
104
60
136
84
160
104
170
116
6.
176
126
178
134
Given the above Table, answer the following
questions:
1. Calculate the marginal utility for each product
2. Write down the two conditions for consumer's
equilibrium in the above case
3. Find the consumer's equilibrium and show how many
units of the two products will Azza purchase?
4. If Azza's income were decreased to R.O 28, what
quantity of good X and Y should be purchased to
maximize her utility?
5. Derive the demand curve
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