Question 55
HardOriginal 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 |
Which price–quantity pairs from this table lie on his demand curve for X?
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
At each price he buys up to the unit whose MU equals that price.
So the MU schedule in rupees is his demand schedule: higher price, fewer units.
- Concept
- MU schedule as the demand schedule
- Typical timeTypical
- 100 s
- Your timeYours
- —
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