Economic work?

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

quantity of pizza slice- 0     1      2..... 3 ..4... 5

Total utility of pizzas-      0  25   43   54   59  58  

    

Marginal Utility of pizzas 0   25  18   11    5    -1

Marginal utility of first uinit is 25 because that is the total utility of 1 unit. Marginal utility of 2nd unit is the total utility from 2 units less the total utility of 1 unit = 43-25= 18;

to get the total utility of the 3rd unit, we add up total utility of first two unit (43) and the marginal utility of the 3rd unit(11) which gives total utility of 3 units = 54, Do the similar adding up total utility upto the precious unit of ourchase and the marginal utility of the current unit.

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?

If you are given the price of movie and wants to solve how much pizza will be bought!.

If slice of pizza costs $4, the consumer buy 5 slices of pizza with $20 avaiable in the budget =$20/4 = 5 slices of pizza. That is where marginal utility equals price and utility is maximized.

Your question is not correctly posed.

Answer 2

.Q...0...1....2....3 ...4....5

TU..0..25..43..54 ..59..58

MU.X..25..18..11 ...5...-1

TC...0...4...8...12..16..20

MC..X...4...4 ...4....4....4

Pr...0...21..35..42 .43..38

Pr-profit or benefit

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

Answer: Quantity of pizza Q=4