Question

at kevins current consumption bundle, the marginal utility of apples is 8.9 utils/unit. suppose the quantity of apples in the bundle increases and kevins utility level increases by 1.3 utils. please find the increase in the quantity of apples.

• hints/example

question 4
2 pts
when matthews consumption of good a increases from 9.4 to 11.3, his utility level increases from 4.7 to 24.3. at his current consumption bundle, the marginal utility of good a is ____ utils/unit.

• hints/example

Explanation:

Question 1

Step1: Recall marginal - utility formula

Marginal utility (MU) = $\frac{\Delta U}{\Delta Q}$, where $\Delta U$ is the change in utility and $\Delta Q$ is the change in quantity. We need to find $\Delta Q$, and we know MU = 8.9 utils/unit and $\Delta U$ = 1.3 utils.

Step2: Rearrange the formula to solve for $\Delta Q$

$\Delta Q=\frac{\Delta U}{MU}$.
Substitute $\Delta U = 1.3$ and MU = 8.9 into the formula: $\Delta Q=\frac{1.3}{8.9}\approx0.146$ units.

Step1: Calculate the change in quantity and utility

$\Delta Q=11.3 - 9.4=1.9$, $\Delta U=24.3 - 4.7 = 19.6$.

Step2: Use the marginal - utility formula

Marginal utility (MU) = $\frac{\Delta U}{\Delta Q}$.
Substitute $\Delta U = 19.6$ and $\Delta Q = 1.9$ into the formula: MU=$\frac{19.6}{1.9}\approx10.32$ utils/unit.

Answer:

0.146

Question 2