Given the following information:   Quantity (units) TU1 TU2 0 0 0 1 40 20 2 60 36 3 76 45 4 86 51 5 94 53   TU(Total utility)   Assume that P1 = 4 naira per unit and P2= 10 naira per unit:   a. What quantities of q1 and q2 does the consumer buy at the equilibrium point   b. Calculate the total utility that he derives at that point.   c. Calculate the budget line or income of the consumer

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 6QP
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Given the following information:

 

Quantity (units) TU1 TU2

0 0 0

1 40 20

2 60 36

3 76 45

4 86 51

5 94 53

 

TU(Total utility)

 

Assume that P1 = 4 naira per unit and P2= 10 naira per unit:

 

a. What quantities of q1 and q2 does the consumer buy at the equilibrium point

 

b. Calculate the total utility that he derives at that point.

 

c. Calculate the budget line or income of the consumer

 

and this result on a graph

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