KAMVA489Time Remaining: 02:54:13Hide Time Remaining ASuppose the weightedmarginal utility for twogoods, x and y, at a positionof consumer equilibrium is70. If the price of good x isR10 and the relevantmarginal utility for y is 140,what is the price of good yand the relevant marginalutility for good x?A. The price of y = R70; themarginal utility for x = 70%3DB. The price of y = R2; the marginalutility for x =700C. The price of y = R10; themarginal utility for x = 700D. The price of y = R2; the marginalutility for x = 140E. The price of y = R140; themarginal utility for x = 70Reset Selection|54II

Here, weighted marginal utility is given as 70 at equilibrium, it implies that MUm is equal to 70.

Answered: Suppose the weighted marginal utility…

ENGR.ECONOMIC ANALYSIS

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Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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You consume music (M) and concert tickets (C). Your utility function is U(M, C) = M1/4C3/4. The marginal utility for concert tickets, MUC is MUC =3/4C-1/2M1/4 and the marginal utility for music, MUM is MUm = 1/4C3/4M-3/4 (a) Calculate MRSMC using only the given marginal utilities. (b) Solve for the utility of bundle A where M = 16 and C = 16. Solve for your utility at bundle B where M = 128 and C = 8. Are the utilities the same? (c) Calculate MRSMC at bundle A and at bundle B. Are they the same? (d) Are your indifference curves convex? Draw the ICs. Make sure to label the quantities of the consumption bundles, the axis, and the MRS at those bundles.
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You consume music (M) and concert tickets (C). Your utility function is U(M, C) = M1/4C3/4. The marginal utility for concert tickets, MUC is MUC =3/4C-1/2M1/4 and the marginal utility for music, MUM is MUm = 1/4C3/4M-3/4 (a) Calculate MRSMC using only the given marginal utilities. (b) Solve for the utility of bundle A where M = 16 and C = 16. Solve for your utility at bundle B where M = 128 and C = 8. Are the utilities the same? (c) Calculate MRSMC at bundle A and at bundle B. Are they the same? (d) Are your indifference curves convex? Draw the ICs. Make sure to label the quantities of the consumption bundles, the axis, and the MRS at those bundles.

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Suppose the weighted marginal utility for two goods, x and y, at a position of consumer equilibrium is 70. If the price of good x is R10 and the relevant marginal utility for y is 140, what is the price of good y and the relevant marginal utility for good x?