Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K.Units of JMUjUnits of KMUk1561322482283323244244205205126166107127 8If the consumer has money income of $56 and the prices of J and K are $16 and $8 respectively, the consumer will maximize her utility by purchasing:a. 2 units of J and 3 units of K. b. 4 units of J and 5 units of K. c. 6 units of J and 3 units of K. d. 5 units of J and 5 units of K.

"Utility is maximized at a point where the ratio of marginal utility to price of one good equates…

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Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter21: Demand: Consumer Choic

Section: Chapter Questions

Problem 1E

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Answer the question on the basis of the following two schedules, which show the amounts of additional satisfaction (marginal utility) that a consumer would get from successive quantities of products J and K.

Units of J	MUj	Units of K	MUk
1	56	1	32
2	48	2	28
3	32	3	24
4	24	4	20
5	20	5	12
6	16	6	10
7	12	7	8

If the consumer has money income of $56 and the prices of J and K are $16 and $8 respectively, the consumer will maximize her utility by purchasing:

a. 2 units of J and 3 units of K.

b. 4 units of J and 5 units of K.

c. 6 units of J and 3 units of K.

d. 5 units of J and 5 units of K.

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