Economics 32 discussion of question/answers

[AlphaCentauri]

D. The same utility is obtained from the last unit of expenditure on each commodity > IS MU/$

 

[Mattman]

D. The same utility is obtained from the last unit of expenditure on each commodity > IS MU/$

B is marginal utility PER dollar..

lets say MU is same for both goods, lets say 10.

but the prices is 1 and 2, its different. MU/$ is 10 and 5 each.

 

[AlphaCentauri]

B is marginal utility PER dollar..

lets say MU is same for both goods, lets say 10.

but the prices is 1 and 2, its different. MU/$ is 10 and 5 each.

No. Read it well. B is the TOTAL utility per $ spent on each commodity is the same.

 

[AlphaCentauri]

Lol, okay, I get you. Now, both answer seem to fit in.

 

[Mattman]

what were A B C and D again?

 

[ZohaibAsad]

What was the question on MU ?

 

[Mattman]

Consumer who wants to maximise his utility needs to allocate expenditure so that..

something like that

 

[AlphaCentauri]

2.A consumer who aims to maximise his utility will arrange his consumption so that

A. the total utility obtained from each commodity is the same.
B. the total utility per $ spent on each commodity is the same.
C. the same utility is obtained from the last unit of each commodity.
D. the same utility is obtained from the last unit of expenditure on each commodity.

 

[Mattman]

Oh yes its D then,sry. i guess unit of expenditure is per dollar

 

[ZohaibAsad]

2.A consumer who aims to maximise his utility will arrange his consumption so that

A. the total utility obtained from each commodity is the same.
B. the total utility per $ spent on each commodity is the same.
C. the same utility is obtained from the last unit of each commodity.
D. the same utility is obtained from the last unit of expenditure on each commodity.

Ok, in Consumer Theory this is called the Last-Dollar Rule.
When subject to a budget constraint, a rational consumer maximizes utility on the point on his indifference curve (a curve illustrating combinations of good which give the consumer the same level of satisfaction or utility) where the same utility is obtained from the last dollar spent on each commodity.

You can also refer to that here http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=rule+of+consumer+equilibrium

 

[AlphaCentauri]

Ok, in Consumer Theory this is called the Last-Dollar Rule.
When subject to a budget constraint, a rational consumer maximizes utility on the point on his indifference curve (a curve illustrating combinations of good which give the consumer the same level of satisfaction or utility) where the same utility is obtained from the last dollar spent on each commodity.

You can also refer to that here http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=rule of consumer equilibrium

What is the answer?

 

[ZohaibAsad]

What is the answer?

D

 

[AlphaCentauri]

D

Thank you for confirming it.

 

[Mattman]

the 1st few are in order but after that i gave up remembering the correct order so far i got 3 wrong, the 2nd question, individual supply of labor, and then the natural unemployment

 

[AlphaCentauri]

Ah, don't worry. I lost much more in P4 than this..

 

[Mattman]

it will be fine i think. GT for p4 is like 45-50 only

 

[Qamar Baloch]

Nice

 

[Mattman]

bump anyone else did the paper plz compare