Units of X 1 2 23 456 MUX 10 8 64 utils 32 2 units of X and Units of Y 1 2 3 4 5 b. What total utility will you realize? ND 6 units of Y MUY 8 Instructions: Enter your answers as a whole number. a. If your Income Is $9 and the prices of X and Y are $2 and $1, respectiv utility? 75515 units of Y 6 4 3 c. Assume that, other things remaining unchanged, the price of X falls to units of X and

Units of X 1 2 23 456 MUX 10 8 64 utils 32 2 units of X and Units of Y 1 2 3 4 5 b. What total utility will you realize? ND 6 units of Y MUY 8 Instructions: Enter your answers as a whole number. a. If your Income Is $9 and the prices of X and Y are $2 and $1, respectiv utility? 75515 units of Y 6 4 3 c. Assume that, other things remaining unchanged, the price of X falls to units of X and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

Units of X
3
6
5
17
MUX
10
ww
8
6
b. What total utility will you realize?
utils
2
Instructions: Enter your answers as a whole number.
a. If your Income is $9 and the prices of X and Y are $2 and $1, respectively, what quantities of each will you purchase to maximize
utility?
units of X and
Price of X
Units of Y
units of X and
c. Assume that, other things remaining unchanged, the price of X falls to $1. What quantities of X and Y will you now purchase?
3
4
5
6
d. Using the two prices and quantitles for X, complete the table to derive the demand schedule (a table showing prices and quantities
demanded) for X.
Instructions: Start with the highest price first
Quantity
Demanded of X
units of Y
MUY
8
7
6
5
4
13
units of Y

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