Economics 9708 · AS & A Level · Utility and rational consumer behaviour

Utility and rational consumer behaviour — practice question

A consumer aiming to maximise utility uses all of his disposable income of $40 on food and clothing. The table gives the price of food, the quantity bought by the consumer, and the marginal utility he gains from consuming food. His marginal utility from clothing is 2 units. What is the price per unit of clothing and the quantity bought by the consumer?

  • A0.5, 30
  • B1.0, 15
  • C3.0, 5
  • D5.0, 3

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