Ahmed has an income of 37 Rial Omani (R.O) and the price of goods X, Y and Z, are R.O 5, R.0 1 and R.O 4 respectively. The amount of total utility he would derive from consuming X, Y and Z is shown in the Table below: Quantity Product X Product Y Product Z Total Utility MUx/Px Total Utility MUy/Py Total Utility MUz/Pz (TU) (TU) (TU) 21 16 41 13 30 59 18 42 74 22 50 85 25 55 6. 91 27 58 91 28 60 Given the above Table, answer the following questions: 1. Fill in the blank ( in the above table) 2. Write down the two conditions for consumer's equilibrium in the above case 3. Find the consumer's equilibrium and show how many units of the three products will Ahmed purchase?
Ahmed has an income of 37 Rial Omani (R.O) and the price of goods X, Y and Z, are R.O 5, R.0 1 and R.O 4 respectively. The amount of total utility he would derive from consuming X, Y and Z is shown in the Table below: Quantity Product X Product Y Product Z Total Utility MUx/Px Total Utility MUy/Py Total Utility MUz/Pz (TU) (TU) (TU) 21 16 41 13 30 59 18 42 74 22 50 85 25 55 6. 91 27 58 91 28 60 Given the above Table, answer the following questions: 1. Fill in the blank ( in the above table) 2. Write down the two conditions for consumer's equilibrium in the above case 3. Find the consumer's equilibrium and show how many units of the three products will Ahmed purchase?
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
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Transcribed Image Text:Ahmed has an income of 37 Rial Omani (R.O) and the price
of goods X, Y and Z, are R.O 5, R.0 1 and R.O 4 respectively.
The amount of total utility he would derive from consuming X,
Y and Z is shown in the Table below:
Quantity
Product X
Product Y
Product Z
Total Utility MUx/Px Total Utility MUy/Py Total Utility MUz/Pz
(TU)
(TU)
(TU)
21
16
41
13
30
59
18
42
74
22
50
85
25
55
6.
91
27
58
91
28
60
Given the above Table, answer the following questions:
1. Fill in the blank ( in the above table)
2. Write down the two conditions for consumer's equilibrium in
the above case
3. Find the consumer's equilibrium and show how many units
of the three products will Ahmed purchase?
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