Answer to Question #64013 in Economics for Faisal

Question

Question 01
Use the following hypothetical table to analyze a consumer behavior:
Good X Good Y
Unit
Consumed Price/
unit
($) PX
Total
Utility
(TUX) Marginal
Utility
(MUX) MUX/PX MUY/PY Marginal
Utility
(MUY) Total
Utility
(TUY)
Price/
Unit
($), PY Unit
Consumed
1 5 40 40 8 10 10 2 1
2 4 60 6 16 2 2
4 3 90 15 22 2 3
5 2 95 27 2 4

a. Fill up gaps for marginal utilities and marginal utility per additional dollar for good x and good y in the above table.

b. Find consumer equilibrium and interpret the meaning of the equilibrium condition
Kindly explain please