A consumer finds only three products, X, Y, and Z, are for sale. The amount of utility which their consumption will yield is shown in the table below. Assume that the prices of X, Y, and Z are $10, $2, and $8, respectively, and that the consumer has an income of $74 to spend. Product X Product Y Product Z Quantity Utility Marginal Utility per $ Quantity Utility Marginal Utility per $ Quantity Utility Marginal Utility per $ 1 42 NA 1 14 NA 1 32 ___NA__ 2 82 4 2 26 6 2 60 __3.5_ 3 118 3.6 3 36 5 3 84 __3___ 4 148 3 4 44 4 4 100 __2___ 5 170 2.2 5 50 3 5 110 _1.25___ 6 182 1.2 6 54 2 6 116 _0.75__ 7 182 0 7 56.4 1.2 7 120 _0.5_ How many units of X, Y, and Z will the consumer buy when maximizing utility and spending all income? Show this result using the utility maximization formula.
A consumer finds only three products, X, Y, and Z, are for sale. The amount of utility which their consumption will yield is shown in the table below. Assume that the prices of X, Y, and Z are $10, $2, and $8, respectively, and that the consumer has an income of $74 to spend. Product X Product Y Product Z Quantity Utility Marginal Utility per $ Quantity Utility Marginal Utility per $ Quantity Utility Marginal Utility per $ 1 42 NA 1 14 NA 1 32 ___NA__ 2 82 4 2 26 6 2 60 __3.5_ 3 118 3.6 3 36 5 3 84 __3___ 4 148 3 4 44 4 4 100 __2___ 5 170 2.2 5 50 3 5 110 _1.25___ 6 182 1.2 6 54 2 6 116 _0.75__ 7 182 0 7 56.4 1.2 7 120 _0.5_ How many units of X, Y, and Z will the consumer buy when maximizing utility and spending all income? Show this result using the utility maximization formula.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 3SQP
Related questions
Question
- A consumer finds only three products, X, Y, and Z, are for sale. The amount of utility which their consumption will yield is shown in the table below. Assume that the prices of X, Y, and Z are $10, $2, and $8, respectively, and that the consumer has an income of $74 to spend.
Product X |
|
Product Y |
|
Product Z |
||||||
|
Quantity |
Utility |
Marginal Utility per $ |
|
Quantity |
Utility |
Marginal Utility per $ |
|
Quantity |
Utility |
Marginal Utility per $ |
|
1 |
42 |
NA |
|
1 |
14 |
NA |
|
1 |
32 |
___NA__ |
|
2 |
82 |
4 |
|
2 |
26 |
6 |
|
2 |
60 |
__3.5_ |
|
3 |
118 |
3.6 |
|
3 |
36 |
5 |
|
3 |
84 |
__3___ |
|
4 |
148 |
3 |
|
4 |
44 |
4 |
|
4 |
100 |
__2___ |
|
5 |
170 |
2.2 |
|
5 |
50 |
3 |
|
5 |
110 |
_1.25___ |
|
6 |
182 |
1.2 |
|
6 |
54 |
2 |
|
6 |
116 |
_0.75__ |
|
7 |
182 |
0 |
|
7 |
56.4 |
1.2 |
|
7 |
120 |
_0.5_ |
How many units of X, Y, and Z will the consumer buy when maximizing utility and spending all income? Show this result using the utility maximization formula.
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