Suppose that Akbar has consumed two goods Ice cream and apple juice. Details of MUice-cream and MUapple_juice are given in the following table. Akbar's income is Rs.100 and the price of Ice-cream is Rs.20 and the price of apple juice is Rs.20. Units 1 2 3 4 7 10 MUice-cream 300 290 260 230 190 160 120 80 60 20 MUapple_juice 240 220 200 130 125 110 80 40 -5 a. Determine how much total utility Akbar receives when he purchases the combination of Ice-cream and Apple Juice that maximizes total utility? b. How much total utility would the Akbar get if he spends all his income on Apple Juice? c. How much total utility would the Akbar get if he spends all his income on Ice-Cream?

Suppose that Akbar has consumed two goods Ice cream and apple juice. Details of MUice-cream and MUapple_juice are given in the following table. Akbar's income is Rs.100 and the price of Ice-cream is Rs.20 and the price of apple juice is Rs.20. Units 1 2 3 4 7 10 MUice-cream 300 290 260 230 190 160 120 80 60 20 MUapple_juice 240 220 200 130 125 110 80 40 -5 a. Determine how much total utility Akbar receives when he purchases the combination of Ice-cream and Apple Juice that maximizes total utility? b. How much total utility would the Akbar get if he spends all his income on Apple Juice? c. How much total utility would the Akbar get if he spends all his income on Ice-Cream?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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