Suppose you are eating buffalo wings at a local happy hour. The total utils from
ID: 1121504 • Letter: S
Question
Suppose you are eating buffalo wings at a local happy hour. The total utils from doing so after the fourth, fifth, sixth, and seventh wings are 80, 116, 136, 150, respectively. The marginal utility of the sixth wing is a. 14 b. 136 c. 20 d. 22.7 Suppose you are eating buffalo wings at a local happy hour. The total utils from doing so after the fourth, fifth, sixth, and seventh wings are 30, 50, 65, 72, respectively. In this situation we have utility, which is generally a. increasing: assumed b. increasing; not assumed c. diminishing; assumed d. diminishing; not assumed marginal in the analysis of consumer choice. In order for an individual to achieve consumer equilibrium through the consumption of two goods, A and B. that individual must fulfill the condition a. TUA TU c. MU-MU.Explanation / Answer
Answer 1 - c) 20 utils.
marginal utility from 6th = total utility from 6th - total utility from 5th =136-116 = 20 utils.
Answer2 - c) diminishing, assumed
When analysing consumer utility it is assumed that the marginal utility will decrease as the no. of units of consumtion increases, because the consumers becomes satisfies and increasing satisfaction leads to reducing utility.
Answer 3- d) MUa/Pa = MUb/Pb
When using two commodities consumer equilibrium is reached when ration between the Marginal utility of good 1 and its price is equal to the marginal utility of good 2 and its price,.
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