Question 1
Oranges Total Utility Mangoes Total Utility 
1 100 1 50
2 190 2 95
3 270 3 135
4 340 4 170
5 400 5 200
6 450 6 225
7 490 7 245
8 520 8 260

The table above shows Mr. Y's schedule of total utility for oranges and mangoes. The prices of oranges and mangoes are at $1.00 each. Mr. Y has $10 00 to spend on the goods.
Use the information contained in thetable to answer the questions that follow
(a) Calculate the marginal utility for all the levels of consumption for the goods.
(b) At equilibrium, how many (i) oranges (ii) mangoes, will the consumer buy? 
(c) (i)State the law of diminishing marginal utility. (ii) State the marginal condition for utility maximization.

Theory

Question details

Exam body
WAEC
Subject
Economics
Year
2007
Question no.
#1
Type
Theory

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