paraphrase and re-write the whole thing in your own words, because it is from a website .. change and re-write the whole answers. Keep the numbers the same. Do it perfectly without any copying from the original pictures.
Marginal Utility Schedule:-
|
Quantity of subscriptions to economics statistics app |
Total Utility |
Marginal Utility |
Marginal Utility / Price of subscriptions to economics statistics app |
Quantity of subscriptions to office productivity app |
Total Utility |
Marginal Utility |
Marginal Utility / Price of subscriptions to office productivity app |
|
1 |
40 |
40 |
40 / 2 = 20 |
1 |
400 |
400 |
400 / 60 = 6.67 |
|
2 |
60 |
20 |
20 / 2 = 10 |
2 |
700 |
300 |
300 / 60 = 5 |
|
3 |
76 |
16 |
16 / 2 = 8 |
3 |
850 |
150 |
150 / 60 = 2.50 |
|
4 |
86 |
10 |
10 / 2 = 5 |
4 |
950 |
100 |
100 / 60 = 1.67 |
|
5 |
91 |
5 |
5 / 2 = 2.5 |
5 |
1000 |
50 |
50 / 60 = 0.83 |
|
6 |
93 |
2 |
2 / 2 = 1 |
6 |
1025 |
25 |
25 / 60 = 0.42 |
It is evident from the table that in order to have maximum utility, consumer will purchase 4 unit of subscriptions to economic statistics app and 2 units of subscriptions to office productivity app because this combination of goods satisfies the following two conditions:
i) At 4 Units of subscriptions to economic statistics app and at 2 units of subscriptions to office productivity app, the ratio of marginal utility of economic statistics app to its price is equal to the the ratio of marginal utility of office productivity app to its price .
10 / 2 = 300 / 60
5 = 5 (Bold and Underlined in marginal utility schedule)
ii) Total Money Spent just equal to Total income.
Price of economic statistics app * Quantity of economic statistics app + Price of office productivity app * Quantity of office productivity app = Income
2 * 4 + 60 * 2 = 128
8 + 120 = 128
128 = 128
Conclusion:- Consumer will purchase 4 unit of subscriptions to economic statistics app and 2 units of subscriptions to office productivity app so as to maximize his satisfaction level.