Question

Q5. Summit has $ 90 with him. He intends to purchase goods X and Y with his money. The market price of X and Y per unit is $10. The marginal utility schedule of goods X and Y is given below.

Units of     Commodity	MUx	MUy
1	80	40
2	72	32
3	64	24
4	56	20
5	48	16
6	40	12
7	32	8
8	24	4
9	16	0
10	8	0

    

(a) From above schedule find Total Utility schedule for both goods. No need for graph.

of X and Y per unit is $10. The marginal utility schedule of goods X and Y is given below.

Units of     Commodity	MUx	MUy	MU/Py	Total utility X	TOTAL UTILITY Y
1	80	40	4.0	80	40
2	72	32	3.2	152	72
3	64	24	2.4	216	96
4	56	20	2.0	272	116
5	48	16	1.6	320	132
6	40	12	1.2	360	144
7	32	8	0.8	392	152
8	24	4	0.4	416	156
9	16	0	0	432	156
10	8	0	0	440	156

    

(b) Find out how many units of X and Y should Summit purchase so that he gets maximum

satisfaction?

Answer 1