Homework Answers
| No. of Pizzas | TU of Pizza | MU of Pizza | MU/P Pizza | No. of Coke | TU Coke | MU coke | MU/P of Coke |
| 0 | 0 | 0 | 0 | ||||
| 1 | 10 | 10 | 20 | 1 | 25 | 25 | 25 |
| 2 | 18 | 8 | 16 | 2 | 40 | 15 | 15 |
| 3 | 25 | 7 | 14 | 3 | 53 | 13 | 13 |
| 4 | 30 | 5 | 10 | 4 | 63 | 10 | 10 |
| 5 | 34 | 4 | 8 | 5 | 68 | 5 | 5 |
| 6 | 37 | 3 | 6 | 6 | 71 | 3 | 3 |
| 7 | 39 | 2 | 4 | 7 | 73 | 2 | 2 |
| 8 | 40 | 1 | 2 | 8 | 74 | 1 | 1 |
MU or marginal utility is the difference between total utility over additional unit consumption.
MU= Change in TU/Change in Units consumed
Equi-Marginal Principle: MUPizza/Price of Pizza = MUcoke/Price of Pizza
The highest level of utility is 5+10 = 15 utils
| Colour | No. of Pizzas | No. of Coke | Total Expenditure | Budget | Remarks | Utility |
| 4 | 4 | 6 | 6 | Affordable & Equilibrium | 15 | |
| 8 | 7 | 11 | 6 | Unaffordable | 3 |
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