Question 42
MediumOriginal questionA consumer's marginal utility from good X, measured in rupees, is:
| Unit of good X | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| MU (in ₹) | 30 | 25 | 20 | 15 | 10 |
If the price of X is ₹15, how many units will he buy?
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
He buys a unit as long as its MU (in ₹) is at least the price.
The 4th unit's MU is ₹15 = price; the 5th gives only ₹10 < ₹15. So he buys 4.
- Concept
- Equilibrium quantity with MU in rupees
- Typical timeTypical
- 70 s
- Your timeYours
- —
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