Purchase Solution

# measurement for utility

Not what you're looking for?

Summary
If George spends \$5 (total) a week on good X and good Y, and if the price of each good is \$1 per unit, then how many units of each good does he purchase to maximize utility?

To maximize the utility, George has to spend all his money buying one type of good. Either he buys 5 units of good X or 5 units of good Y.

Question (answer this question by using the information provided above)
Given the number of units of each good George purchased in the above summary, what is his total utility?

##### Solution Summary

Determine total utility

##### Solution Preview

We can solve the question by graphing:
<br>Please refer to the attached diagrams.
<br>The first one is a usual convex indifference curve, which is tangent to the budget line at point A.
<br>However, this ...

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.