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Ice cream sell for rupees 20 . priya who likes this has consumed 4 . her marginal utility of one rupee is 4 is she should consume more ice cream or she should stop?
Most Upvoted Answer
Ice cream sell for rupees 20 . priya who likes this has consumed 4 . h...
Analysis of Priya's Marginal Utility of Ice Cream
What is Marginal Utility?
Marginal utility is the additional satisfaction or benefit that a consumer derives from consuming an additional unit of a good or service.
Priya's Marginal Utility Calculation
Priya's marginal utility of one rupee is 4. This means that she gets an additional satisfaction of 4 units for every additional rupee she spends on ice cream.
Should Priya consume more ice cream?
It depends on whether the total utility she derives from consuming ice cream is still increasing or has reached a point of saturation. If the total utility is still increasing, Priya should consume more ice cream as she is getting more satisfaction per rupee spent. However, if the total utility has reached a saturation point, Priya should stop consuming as the additional satisfaction she gets from consuming more ice cream will be lower than the satisfaction she gets from consuming other goods or services.
Factors Affecting Total Utility
The total utility that Priya derives from consuming ice cream is affected by various factors such as:
- Her preferences for ice cream
- The availability of other goods and services that can provide similar or higher satisfaction
- The price of ice cream
- The availability of income to spend on ice cream
- The quantity of ice cream consumed
Conclusion
Based on Priya's marginal utility calculation, it appears that she is still getting a high level of satisfaction from consuming ice cream. However, her decision to consume more or stop should be based on the total utility she derives from consuming ice cream. Priya should consider the factors affecting her total utility before making a decision.
Community Answer
Ice cream sell for rupees 20 . priya who likes this has consumed 4 . h...
As a consumer attains equillibrium when: MUx/Px=MUm substituting the given values we get MUx/20=4 implying that in a state if equillibrium, priya's MUx=80utils she must stop consuming
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Ice cream sell for rupees 20 . priya who likes this has consumed 4 . her marginal utility of one rupee is 4 is she should consume more ice cream or she should stop?
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Ice cream sell for rupees 20 . priya who likes this has consumed 4 . her marginal utility of one rupee is 4 is she should consume more ice cream or she should stop? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ice cream sell for rupees 20 . priya who likes this has consumed 4 . her marginal utility of one rupee is 4 is she should consume more ice cream or she should stop? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ice cream sell for rupees 20 . priya who likes this has consumed 4 . her marginal utility of one rupee is 4 is she should consume more ice cream or she should stop?.
Ice cream sell for rupees 20 . priya who likes this has consumed 4 . her marginal utility of one rupee is 4 is she should consume more ice cream or she should stop? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Ice cream sell for rupees 20 . priya who likes this has consumed 4 . her marginal utility of one rupee is 4 is she should consume more ice cream or she should stop? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ice cream sell for rupees 20 . priya who likes this has consumed 4 . her marginal utility of one rupee is 4 is she should consume more ice cream or she should stop?.
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