Suppose the marginal utility of a Coke is 15 utils and its price is $1.?

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Suppose the marginal utility of a Coke is 15 utils and its price is $1.?

The marginal utility of a pizza is 20 utils, and its price is $2. If you buy one unit of each good, will you achieve consumer equilibrium?

If not, how can greater total utility be obtained?

2007-02-23 03:29:57 · 2 answers · asked by TP2001 2 in Social Science ➔ Economics

2 answers

One of each unit= 35 utils of utility.

Instead, buy 3 units of coke with your 3 dollars. You get 45 utils. That would give you higher total utility, assuming constant marginal utility for each unit of coke.

2007-02-23 03:34:25 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋

STUFF IS OVER PRICED!

2007-02-23 03:37:03 · answer #2 · answered by CrazyCatLady 2 · 1⤊ 0⤋