Q7. Jamal has Budget of $50 and he needs two goods (Milk and Movie) to live. The price of a bottle of Milk is $5 and a Movie ticket is $10. The following table shows the Jamal's Utilities from these two goods. Bottles of Milk Movie Tickets Quantity Total Marginal MU/$ Quantity Total Marginal MU/$ Utility Utility Utility Utility 1 95 1 170 2 180 2 320 3 255 3 450 4 320 4 560 5 375 5 650 6 420 6 720 a. Fill the blanked columns? b. Write down the budget equation of Jamal. c. Write down all the consumption possibilities for Jamal. ABCD E Bottles of Milk Movie Tickets F G H d. Explain why the marginal utilities of Jamal is decreasing if he consumes more and more of a good? e. Explain the rule for utility maximization and identify the Utility maximization level of Jamal?
Q7. Jamal has Budget of $50 and he needs two goods (Milk and Movie) to live. The price of a bottle of Milk is $5 and a Movie ticket is $10. The following table shows the Jamal's Utilities from these two goods. Bottles of Milk Movie Tickets Quantity Total Marginal MU/$ Quantity Total Marginal MU/$ Utility Utility Utility Utility 1 95 1 170 2 180 2 320 3 255 3 450 4 320 4 560 5 375 5 650 6 420 6 720 a. Fill the blanked columns? b. Write down the budget equation of Jamal. c. Write down all the consumption possibilities for Jamal. ABCD E Bottles of Milk Movie Tickets F G H d. Explain why the marginal utilities of Jamal is decreasing if he consumes more and more of a good? e. Explain the rule for utility maximization and identify the Utility maximization level of Jamal?
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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