1. Let the following table represents the total utility of a given consumer, in the cardinal utility approach. Q TUX TUY MUX MUY 1 4 5 8 14 18 20 20 6. 10 13 15 16 MUx/Px MUy/PY A) Calculate the MUx and MUy and fill the table in the 4th and 5th rows. B) If the two products (X&Y) are free goods how many of X and Y should the consumer take to maximize utility? C) What is the maximum utility of X and Y if they are free?. D) Assuming the consumer has any amount of money (enough budget) how many of X and Y should the consumer buy, to maximize utility? E) What is the total utility of X and Y? F) Let now price of X is 4 birr per unit and price of Y is 2 birr per unit and budget of the consumer for consumption of X and Y is 20 birr. Given budget constraint how many of X and Y should the consumer buy to maximize utility? G) What are the total utility of X and Y

Oh no! Our experts couldn't answer your question.

Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience.

Submit your question and receive a step-by-step explanation from our experts in as fast as 30 minutes.
You have no more questions left.
Message from our expert:
Hi and thanks for your question! Unfortunately we cannot answer this particular question due to its complexity. We've credited a question back to your account. Apologies for the inconvenience.
Your Question:

Let the following table represents the total utility of a given consumer, in the cardinal utility approach.

Q 1 2 3 4 5
Tux 8 14 18 20 20
Tuy 6 10 13 15 16
Mux          
Muy          
Mux/px          
Muy/py          

 

A) Calculate the MUx and MUy and fill the table in the 4th and 5th rows. B) If the two products (X&Y) are free goods how many of X and Y should the cons

consumer

take to maximize utility?

C) What is the maximum utility of X and Y if they are free?.

D) Assuming the consumer has any amount of money (enough budget) how many of X and Y should the consumer buy, to maximize utility?

E) What is the total utility of X and Y?

F) Let now price of X is 4 birr per unit and price of Y is 2 birr per unit and budget of the consumer for consumption of X and Y is 20 birr. Given budget constraint how many

of X and Y should the consumer buy to maximize utility?

G) What are the total utility of X and Y

1. Let the following table represents the total utility of a given consumer, in the cardinal
utility approach.
Q
TUX
TUY
MUX
MUY
1
4
5
8
14
18
20
20
6.
10
13
15
16
MUx/Px
MUy/PY
A) Calculate the MUx and MUy and fill the table in the 4th
and 5th
rows.
B) If the two products (X&Y) are free goods how many of X and Y should the consumer
take to maximize utility?
C) What is the maximum utility of X and Y if they are free?.
D) Assuming the consumer has any amount of money (enough budget) how many of X
and Y should the consumer buy, to maximize utility?
E) What is the total utility of X and Y?
F) Let now price of X is 4 birr per unit and price of Y is 2 birr per unit and budget of the
consumer for consumption of X and Y is 20 birr. Given budget constraint how many
of X and Y should the consumer buy to maximize utility?
G) What are the total utility of X and Y
Transcribed Image Text:1. Let the following table represents the total utility of a given consumer, in the cardinal utility approach. Q TUX TUY MUX MUY 1 4 5 8 14 18 20 20 6. 10 13 15 16 MUx/Px MUy/PY A) Calculate the MUx and MUy and fill the table in the 4th and 5th rows. B) If the two products (X&Y) are free goods how many of X and Y should the consumer take to maximize utility? C) What is the maximum utility of X and Y if they are free?. D) Assuming the consumer has any amount of money (enough budget) how many of X and Y should the consumer buy, to maximize utility? E) What is the total utility of X and Y? F) Let now price of X is 4 birr per unit and price of Y is 2 birr per unit and budget of the consumer for consumption of X and Y is 20 birr. Given budget constraint how many of X and Y should the consumer buy to maximize utility? G) What are the total utility of X and Y
Knowledge Booster
Utility Maximization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Microeconomic Theory
Microeconomic Theory
Economics
ISBN:
9781337517942
Author:
NICHOLSON
Publisher:
Cengage
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning