Economic Help please?

Question

quantity of pizza slice- 0 1 2 3 4 5

Total utility of pizzas- 0 25 43 _ _ _

Marginal Utility of pizzas _ _ _ 11 5 -1

Fill in the blank

If the price of a movie is 4 and there is a $20 budget (all of the budget is spent), how many slices of pizza will the consumer purchase to be in consumer equilibrium?

Answer 1

qty:                     0 1   2   3    4   5

total utility:        0 25 43 54 59 58  

marginal utility:X 25 18 11 5 -1

If you mean that the price of a pizza is 4, then the consumer will purchase 4 slices of pizza, because after that, mu is less than mc...if you really do mean movies, then you'll need to have the price of pizza...

Answer 2

.Q...0...1....2....3 ...4....5  .. << Quantity of pizza

TU..0..25..43..54 ..59..58 . <<Total utility

MU.X..25..18..11 ...5...-1 . << Marginal utility

TC...0...4...8...12..16..20  .. << Total budget spending if P=4

MC..X...4...4 ...4....4....4  .. << Marginal cost

Pr...0...21..35..42 .43..38 . << Total benefit (Utility-Cost)

Pr-profit or benefit

Equilibrium is there MU=MC so closest point from MU side is Q=4 and TC=16 (budget spending) at this point (so it fits budget)

But since it is given that all budget should be spent on pizza - then quantity of pizza consumed/purchased should be Q=5

Answer: Quantity of pizza Q=5

P.S. Seems like some parts of question are missing because data given for pizza but no data for movies.

Answer 3

Quantity of movies 0..1......2.....3......4........5

Total utility.............. 0...25...43..54....59.....58..

Marginal utility........ 0, 25,...18..11......5.....-1

At quantity 1 marginal utility is 25, so total utility is also 25.

At quantity 2 marginal utility is 18 because total utility from 2 units minus total utility from the first unit is the marginal utility of the 2nd unit = 43-25=18.

Marginal utility from the 3rd unit is 11 So add 11 to total utility upto 2 units, you get total utility from 3 pizzas as 43+11= 54

Add marginal utility of 5 of the 4th pizza to total utility of first 3 pizzas to get total utilty of 4 pizzas as 54+5= 59

Similarly, add the marginal utility from the 5th pizza of -1 to t total utility of 4 pizza before to get the total utility of 5 pizzas = 59 ) (-1)= 58

The optimum consumer purchase should be 4 pizzas because that is where the utility is the maximum (and marginal utilty (5) is close to the marginal revenue= price = 4),

Answer 4

utility is a different concept

and

the consumer equilibrium depends upon the price of the pizza and his eating capacity

consumer equilibrium can be attained only if he spends his amount for    all the things equally

                                   or

                         the things he want