Homework Answers
Price of x = $1 , y = $3 Income = $10
| X | Y | ||||
| Q | TU | MU | Q | TU | MU |
| 0 | 0 | 0 | 0 | 0 | 0 |
| 1 | 10 | 10 | 1 | 20 | 20 |
| 2 | 19 | 9 | 2 | 38 | 18 |
| 3 | 27 | 8 | 3 | 54 | 16 |
| 4 | 33 | 6 | 4 | 66 | 12 |
| 5 | 38 | 5 | 5 | 72 | 6 |
| 6 | 42 | 4 | 6 | 73 | 1 |
| 7 | 45 | 3 | |||
| 8 | 47 | 2 | |||
| 9 | 48 | 1 |
Max utility will be achieved at 1 Quantity of x and 3 quantities of Y
consumption bundle = 1X +3Y = $10 or 1(1$)+ 3($3)= $10
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