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Summit has 90 with him. He intends to purchase goods X and Y with his money. The market price of X and Y per unit is 10. The marginal utility schedule of goods X and Y is given below. Find out how many units of X and Y should Summit purchase so that he gets maximum satisfaction.?
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Summit has 90 with him. He intends to purchase goods X and Y with his ...
Marginal Utility Schedule:
- X:
- 1 unit: 12
- 2 units: 10
- 3 units: 8
- 4 units: 6
- 5 units: 4
- Y:
- 1 unit: 10
- 2 units: 8
- 3 units: 6
- 4 units: 4
- 5 units: 2

Calculation:
1. Calculate the total utility for each combination of X and Y:
- For 1 unit of X and 1 unit of Y: 12 + 10 = 22
- For 2 units of X and 1 unit of Y: 10 + 10 = 20
- For 1 unit of X and 2 units of Y: 12 + 8 = 20
- For 2 units of X and 2 units of Y: 10 + 8 = 18
2. Calculate the marginal utility per rupee for each good:
- For X:
- 1 unit: 12/10 = 1.2
- 2 units: 10/20 = 0.5
- 3 units: 8/30 = 0.27
- 4 units: 6/40 = 0.15
- 5 units: 4/50 = 0.08
- For Y:
- 1 unit: 10/10 = 1
- 2 units: 8/20 = 0.4
- 3 units: 6/30 = 0.2
- 4 units: 4/40 = 0.1
- 5 units: 2/50 = 0.04
3. Calculate the marginal utility per rupee for each combination of X and Y:
- For 1 unit of X and 1 unit of Y: 22/20 = 1.1
- For 2 units of X and 1 unit of Y: 20/30 = 0.67
- For 1 unit of X and 2 units of Y: 20/20 = 1
- For 2 units of X and 2 units of Y: 18/30 = 0.6

Conclusion:
Summit should purchase 1 unit of X and 1 unit of Y to maximize his satisfaction as it gives the highest marginal utility per rupee at 1.1.
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Summit has 90 with him. He intends to purchase goods X and Y with his money. The market price of X and Y per unit is 10. The marginal utility schedule of goods X and Y is given below. Find out how many units of X and Y should Summit purchase so that he gets maximum satisfaction.?
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Summit has 90 with him. He intends to purchase goods X and Y with his money. The market price of X and Y per unit is 10. The marginal utility schedule of goods X and Y is given below. Find out how many units of X and Y should Summit purchase so that he gets maximum satisfaction.? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Summit has 90 with him. He intends to purchase goods X and Y with his money. The market price of X and Y per unit is 10. The marginal utility schedule of goods X and Y is given below. Find out how many units of X and Y should Summit purchase so that he gets maximum satisfaction.? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Summit has 90 with him. He intends to purchase goods X and Y with his money. The market price of X and Y per unit is 10. The marginal utility schedule of goods X and Y is given below. Find out how many units of X and Y should Summit purchase so that he gets maximum satisfaction.?.
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