As a consumer you have RM34 per month to spend for snack i.e. either pizzas which costs RM6 each or chicken burger which cost RM4 each. Suppose further that your preference is given by the following Total Utility Table Quantity 1 2 3 4 5 6 7 Pizza 60 108 138 156 162 166 166 Chicken Burger 44 76 100 120 136 148 152 First, graph the budget constraint with Pizzas on the horizontal axis and Chicken burger on the vertical axis. What are the intercepts at horizontal axis and vertical axis. Using the table, please show the Marginal Utility of Pizzas and Chicken Burger for every quantity demand. Using the utility maximizing rule to identify the consumer equilibrium, that is, combination of pizzas and chicken burger that will maximize your Total Utility. Confirm that the consumer equilibrium generates the highest combined total utility of any affordable combination of goods.
As a consumer you have RM34 per month to spend for snack i.e. either pizzas which costs RM6 each or chicken burger which cost RM4 each. Suppose further that your preference is given by the following Total Utility Table Quantity 1 2 3 4 5 6 7 Pizza 60 108 138 156 162 166 166 Chicken Burger 44 76 100 120 136 148 152 First, graph the budget constraint with Pizzas on the horizontal axis and Chicken burger on the vertical axis. What are the intercepts at horizontal axis and vertical axis. Using the table, please show the Marginal Utility of Pizzas and Chicken Burger for every quantity demand. Using the utility maximizing rule to identify the consumer equilibrium, that is, combination of pizzas and chicken burger that will maximize your Total Utility. Confirm that the consumer equilibrium generates the highest combined total utility of any affordable combination of goods.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 3SQP
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Transcribed Image Text:As a consumer you have RM34 per month to spend for snack i.e. either pizzas which costs RM6 each
or chicken burger which cost RM4 each. Suppose further that your preference is given by the
following Total Utility Table
Quantity 1
2
3
4
5
6
7
Pizza
60
108
138
156
162
166
166
Chicken
Burger
44
76
100
120
136
148
152
First, graph the budget constraint with Pizzas on the horizontal axis and Chicken burger on the vertical
axis. What are the intercepts at horizontal axis and vertical axis.
Using the table, please show the Marginal Utility of Pizzas and Chicken Burger for every quantity
demand.
Using the utility maximizing rule to identify the consumer equilibrium, that is, combination of pizzas
and chicken burger that will maximize your Total Utility. Confirm that the consumer equilibrium
generates the highest combined total utility of any affordable combination of goods.
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