If a man buys only Mountain Dew for 2 dollars per 20 oz complete the following c
ID: 1186456 • Letter: I
Question
If a man buys only Mountain Dew for 2 dollars per 20 oz complete the following chart
Quantity of Dew Total Utility from Dew Marginal Utility Marginal Utility Per Dollar
1 20 from the last dew of the last dew
2 39
3 57
4 73
5 83
Using the marginal utility equation I got the answers 20, 39, 57, 73, 83. I need the answers verified because I am not sure if I am calculating them right. And a detailed explaination of Utility per dollar of the last dew because I am not understanding how to do it at all.
Explanation / Answer
Q OFDUE----TU-----MU ROM DUE--------MU OF MONEY------PRICE PER UNIT
------------------------------------------------------ =(MUx/MUm)-------2$
1----------------20-------20------------------------20/2=10---------------2$
2----------------39--------19 ---------------------19/2=9.5--------------2$
3----------------57--------18-------------------------18/2=9 ---------------2$
4----------------73----------16-----------------------16/2 =8 ---------------2$
5-------------83-------------10------------------------10/2=5 --------------2$
A CONSUMER CONSUMING SINGLE COMMODITY ACHIEVES EQUILIBRIUM WHEN MU IN MONEY TERMS IS EQUAL TO THE PRICE OF THE COMODITY. THE MAN WILL BE IN EQUILIBRIUM WHEN PRICE PER DUE i.e 2$ IS EQUAL TO THE MU OF MONEY. IN THIS CASE TO BE INEQUILIBRIUM HE WILL HAVE TO CONSUME MORE DUE i.e MORE THAN FIVE BOTTLES.
THAT WILL BE UTILITY PER DOLLAR OF THE LAST DUE.
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