Question #98196
The table below shows the marginal utility for oranges and apples. The price of orange is ksh.10 and the price of apple is ksh.4. The individual income is ksh.800
Quantity MU of oranges MU of apples
10 110 190
20 100 170
30 90 150
40 80 130
50 70 120
60 60 100
70 80 80
what is the total amount of utility received by the individual when he/she is in equilbrium
Quantity MU of oranges MU of apples
10 110 190
20 100 170
30 90 150
40 80 130
50 70 120
60 60 100
70 80 80
what is the total amount of utility received by the individual when he/she is in equilbrium
Expert's answer
No, this task has no decision. Consumer's equilibrium is when the ratio between the prices is equal to tge ratio between the marginal utilities. The ratio between the prices is 2.5 (10รท4), but there is no such ratio between marginal utilities according to the table.
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#340153 on Dec 2023
#340153 on Dec 2023
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