Summary
A breakdown of two economic problems calculating marginal utility per ringgit and finding consumer equilibrium combinations based on income and prices.
Economics Consumer Equilibrium Exercises
Highlights
Problem 1: Roti John and OrenPage 1
For an individual with RM10.00, Roti John priced at RM2.00, and Oren priced at RM1.00, consumer equilibrium is determined by calculating the marginal utility per ringgit. The equilibrium is achieved at a combination of 3 units of Roti John and 4 units of Oren, resulting in a total utility of 96 utils.
Problem 2: Shahrul's Goods PurchasePage 1
Given an income of RM52, with Barang M priced at RM8 and Barang N at RM4, Shahrul's equilibrium condition is met when the marginal utility per ringgit for both goods is equal (MUm/Pm = MUn/Pn) and the budget constraint (Pm*Qm + Pn*Qn = Income) is satisfied. The optimal combination is 4 units of Barang M and 5 units of Barang N, yielding a total utility of 274 utils.