Given the following information: Quantity (units) TU1 TU2 0 0 0 1 40 20 2 60 36 3 76 45 4 86 51 5 94 53 TU(Total utility) Assume that P1 = 4 naira per unit and P2= 10 naira per unit: a. What quantities of q1 and q2 does the consumer buy at the equilibrium point b. Calculate the total utility that he derives at that point. c. Calculate the budget line or income of the consumer
Given the following information: Quantity (units) TU1 TU2 0 0 0 1 40 20 2 60 36 3 76 45 4 86 51 5 94 53 TU(Total utility) Assume that P1 = 4 naira per unit and P2= 10 naira per unit: a. What quantities of q1 and q2 does the consumer buy at the equilibrium point b. Calculate the total utility that he derives at that point. c. Calculate the budget line or income of the consumer
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 6QP
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Question
Given the following information:
Quantity (units) TU1 TU2
0 0 0
1 40 20
2 60 36
3 76 45
4 86 51
5 94 53
TU(Total utility)
Assume that P1 = 4 naira per unit and P2= 10 naira per unit:
a. What quantities of q1 and q2 does the consumer buy at the equilibrium point
b. Calculate the total utility that he derives at that point.
c. Calculate the budget line or income of the consumer
and this result on a graph
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