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Economics P3 Questions/Doubts

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Azland:
Anyone who has a doubt or question..please post it here and well discuss it here.

I'll start off since this question has been on my mind.



2 The schedule shows the total utility derived by a consumer of a good X at different levels of
consumption.
quantity of X consumed 1    2   3   4    5   6   7
total utility (units)        30 50  65  75  80  83  84

The consumer obtains three units of utility from the last $ she spends on each good that she
purchases.
What is the maximum number of units of X that she will consume if the price of X is $5?
A 3
 B 4
C 5
D 6

Mark scheme says A. Does anyone know how?

lastgift:
Hi Azland!

The equilibrium for a single-good is MUx=Px.
You know the price is $5, you will have to look for marginal utility which should be equal to 5.
When you consume 3 units, the marginal utility is 15 and as she obtains 3 units of utility, the MUx= 15/3= 5.
Thus, C.

Azland:
the answer is A..but thanks anyway for the try ;p

lastgift:
Yes if you examine my solution properly the answer is three units which is option A! Just read the option wrong dude.

Dasith:
k its like this, this guy gets 3 units of utility /$ on each good(this means any other good in market)  she purchases.If the price of a single unit of good x was $5 then she gets:

@ 1 unit of x   : 30 units of utility for $ 5 spent
@ 2 units of x  : 20 units of extra utility $ 5 spent
@ 3 units of x  : 15 units of extra utility $ 5 spent

She wouldent purchase more than that because the utility falls below 15 units / $ 5, where she would buy another good(not good x) from the market which gives @ least 3 units of utility / $ spent.

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