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A consumer of two goods x and y.the price of good X is 10 and price of good Y us 20.Of the MUx is 20 utils then what is MUy?
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A consumer of two goods x and y.the price of good X is 10 and price of...
Calculation of MUy
The given information is as follows:
- Price of good X = 10
- Price of good Y = 20
- MUx = 20 utils
To calculate MUy, we need to use the formula:
MUx / Px = MUy / Py
where:
- MUx = marginal utility of good X
- Px = price of good X
- MUy = marginal utility of good Y
- Py = price of good Y
Substituting the given values in the above formula, we get:
20 / 10 = MUy / 20
Multiplying both sides by 20, we get:
MUy = 20 x 2
MUy = 40 utils
Explanation
Marginal utility is the additional satisfaction that a consumer derives from consuming an additional unit of a good. In this case, the marginal utility of good X is given as 20 utils. This means that the consumer gets an additional 20 units of satisfaction from consuming one more unit of good X.
To calculate the marginal utility of good Y, we use the formula MUx / Px = MUy / Py. This formula states that the marginal utility per unit of money spent on one good is equal to the marginal utility per unit of money spent on the other good.
Substituting the given values in the above formula, we get MUy = 20 x 2 = 40 utils. This means that the consumer gets an additional 40 units of satisfaction from consuming one more unit of good Y.
Community Answer
A consumer of two goods x and y.the price of good X is 10 and price of...
We know that in law of equi marginal utility
MUX/PX=MUY/PY
20/10=MUY/20
MUY=40
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A consumer of two goods x and y.the price of good X is 10 and price of good Y us 20.Of the MUx is 20 utils then what is MUy?
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A consumer of two goods x and y.the price of good X is 10 and price of good Y us 20.Of the MUx is 20 utils then what is MUy? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A consumer of two goods x and y.the price of good X is 10 and price of good Y us 20.Of the MUx is 20 utils then what is MUy? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A consumer of two goods x and y.the price of good X is 10 and price of good Y us 20.Of the MUx is 20 utils then what is MUy?.
A consumer of two goods x and y.the price of good X is 10 and price of good Y us 20.Of the MUx is 20 utils then what is MUy? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A consumer of two goods x and y.the price of good X is 10 and price of good Y us 20.Of the MUx is 20 utils then what is MUy? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A consumer of two goods x and y.the price of good X is 10 and price of good Y us 20.Of the MUx is 20 utils then what is MUy?.
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