Answer to Question #80466 in Economics for Lesego

Question

Quantity Chicken pieces Pies
MU MU/P (R4) MU/P (R2) MU MU/P (R4)
1 32 8 16 48 12
2 24 6 12 40 10
3 16 4 8 32 8
4 12 3 6 16 4
5 8 2 4 12 3
If you have R20 to spend on chicken pieces and pies how many chicken pieces will you consider buying to reach maximum satisfaction if the price is R4 per chicken piece and R4 for a pie?
1. 1
2. 2
3. 3
4. 4
5. 5

Answer 1

Q MU MU/P (R4) MU/P (R2) MU MU/P (R4)
1 32 8 16 48 12
2 24 6 12 40 10
3 16 4 8 32 8
4 12 3 6 16 4
5 8 2 4 12 3
If you have R20 to spend on chicken pieces and pies and the price is R4 per chicken piece and R4 for a pie, then to reach maximum satisfaction you should consider such amount of products for which MUch/Pch = MUp/Pp, so you will buy 1 chicken piece and 3 pies, because you can afford only this bundle with your R20 budget. So, the correct answer is 1.