Homework Answers
Ans: ratios of marginal utility of each product purchased by it's price are equal.
Explanation:
Total utility is maximized when,
(MUx / Px) = (MUy / Py)
It means total utility is maximized when marginal utility per unit dollar spend on each good are equal.
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A consumer who has a limited budget will maximize utility or satisfaction when the 1 Multiple...
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Please help with these questions
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Please help with these questions
Question 1 0.8 pts Marginal utility O occurs when a consumer buys more of a good as a result of a relative price change O occurs when total utility declines as consumption increases. O occurs when there is a change in purchasing power as a result of a change in the price of a good. O is the additional satisfaction derived from consuming one more unit of a good or service. is the combination of...
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Question 5 2 p The marginal-utility-to-price ratio is a representation of the: total satisfaction a consumer gets from a good additional satisfaction a consumer gets from a good satisfaction per dollar spent that a consumer gets from a good law of demand
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Can you answer these questions?
11. Suppose that MUr/Pr exceeds MUyl/Py. To maximize utility the consumer who is spending all her money income should buy A. less of X only if its price rises. B. more of Y only if its price rises. C. more of Y and less of X. D. more of X and less of Y 12. In purchasing products A and B, a consumer is in equilibrium when: 13. The diamond-water paradox atises because: A. essential...
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