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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

Given the number of units of each good that George purchases in Question 4, what is his total utility?

To determine

Identify the value of total utility.

Explanation

The total utility (TU) can be calculated using the following formula:

Total utility=MU (1)

The MU at 3 units of good X is equal to the MU of good Y at 2 units. Hence, the consumer will purchase $3 worth of good X and the $2 worth of good Y.

Total utility from the consumption of 3 units of X can be calculated using Eqaution-1 as follows:

Total utility=20utils+15utils+13utils=48utils

Thus, the total utility from good X is 48 utils

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