Q1.

Use the following to answer questions (Consumer Behaviour)

use the information in the table to answer the indicated questions. Assume the price of cola is
$2 per unit and the price of pretzels is $3 per unit, income= 20

Units of TU of MU of
Units of cola TU of cola MU of cola pretzels pretzels pretzels
1 8 8 1 27 27
2 24 16 2 45 18
3 36 12 3 54 9
4 40 4 4 60 6
5 42 2 5 63 3
1.What combination should he purchase in order to maximize his utility?
2.Write and vertify the equilibrium condition?

Q2 (Demand and Supply)

price Quantity ? Quantity ? Increase

demand
10 24 8 32

If price increase 2 JD and Quantity change 4

1)Fill the blanks in the table?
2)Determine price equilibrium and Quantity equilibrium?
3) If increase demand by 8 units determine the new price equilibrium and
Quantity equilibrium in the table?