Assume that an individual consumes two goods X and Y. The total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $2 and $4.
Units of the Good
Total Utility of X
Total Utility of Y
1
2
3
4
5
6
7
8
20
38
54
68
80
90
98
104
32
60
84
104
120
132
140
144
If the consumer has $22 to spend on X
and Y, the utility-maximizing bundle is
3X and 4Y.
5X and 3Y.
7X and 2Y.
1X and 5Y.
If the consumer buys the fourth unit of X,
the marginal utility of the fourth unit is 68 units of satisfaction.
the marginal utility per dollar spent on X is 39.
the marginal utility per dollar spent on X is 7.
the total utility from X is 180.
Assume that an individual consumes two goods X and Y. The total utility (assumed measurable) of each good is independent of the rate of consumption of other goods. The prices of X and Y are, respectively, $2 and $4.
| Units of the Good | Total Utility of X | Total Utility of Y |
| 1 2 3 4 5 6 7 8 | 20 38 54 68 80 90 98 104 | 32 60 84 104 120 132 140 144 |
If the consumer has $22 to spend on X
and Y, the utility-maximizing bundle is
| 3X and 4Y. | ||
| 5X and 3Y. | ||
| 7X and 2Y. | ||
| 1X and 5Y. |
If the consumer buys the fourth unit of X,
| the marginal utility of the fourth unit is 68 units of satisfaction. | ||
| the marginal utility per dollar spent on X is 39. | ||
| the marginal utility per dollar spent on X is 7. | ||
| the total utility from X is 180. |
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Related questions
Assume that an individual consumes two goods, X and Y. The total utility (assumed measurable) of each good is independent of the consumption rate of other goods.
The price of X and Y are respectively $40 and $60. Use the following table of total utilities to answer the following questions.
| Good | Total utility X | Total utility Y |
| 1 | 20 | 45 |
| 2 | 38 | 78 |
| 3 | 54 | 108 |
| 4 | 68 | 135 |
| 5 | 80 | 159 |
| 6 | 90 | 180 |
a. The marginal utility of the fourth unit of Y is__________.
b. The marginal utility of the fifth unit of X is___________.
c. The marginal utility per dollar spent on the third unit of X is__________.
d. The marginal utility per dollar spent on the second unit of Y is__________.
e. If the consumer has $420 to spend, ______ unit of X and _______units of Y maximize utility subject to the budget constraint. Explain.
f. If the consumer has $220 to spend, _______ units of X and_______ units of Y maximize utility subject to the budget constraint. Explain.
g. If the consumer wanted 4 units of X and 6 units of Y, what would have to be his/her budget constraint in order to maximize his/her utility? Explain.
