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A consumer is consuming two goods X and Y and is in equilibrium. The prices of X and Y are `10 and ` 20 respectively and the marginal utility of good Y is 50 units. What will be marginal utility of good X? (Choose the correct alternative) (a) 100 units (b) 25 units (c) 250 units (d) 4 units?
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A consumer is consuming two goods X and Y and is in equilibrium. The p...
Answer:


Given


  • The price of good X = `10

  • The price of good Y = `20

  • Marginal Utility of good Y = 50 units



To find

The marginal utility of good X.

Solution

For a consumer to be in equilibrium, the following condition must hold:


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 equation, we get:


MUx/10 = 50/20


MUx = 50 * 10 / 20 = 25 units


Therefore, the marginal utility of good X is 25 units. Hence, option (b) is the correct answer.
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A consumer is consuming two goods X and Y and is in equilibrium. The prices of X and Y are `10 and ` 20 respectively and the marginal utility of good Y is 50 units. What will be marginal utility of good X? (Choose the correct alternative) (a) 100 units (b) 25 units (c) 250 units (d) 4 units?
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A consumer is consuming two goods X and Y and is in equilibrium. The prices of X and Y are `10 and ` 20 respectively and the marginal utility of good Y is 50 units. What will be marginal utility of good X? (Choose the correct alternative) (a) 100 units (b) 25 units (c) 250 units (d) 4 units? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about A consumer is consuming two goods X and Y and is in equilibrium. The prices of X and Y are `10 and ` 20 respectively and the marginal utility of good Y is 50 units. What will be marginal utility of good X? (Choose the correct alternative) (a) 100 units (b) 25 units (c) 250 units (d) 4 units? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A consumer is consuming two goods X and Y and is in equilibrium. The prices of X and Y are `10 and ` 20 respectively and the marginal utility of good Y is 50 units. What will be marginal utility of good X? (Choose the correct alternative) (a) 100 units (b) 25 units (c) 250 units (d) 4 units?.
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