CONSUMER BEHAVIOUR EXERCISES

SCL 6

1. The table below shows the quantity and total utility obtained from consumption of good X.

Quantity Total Utility Marginal Utility

1 40
2 75
3 105
4 130
5 150

a. Fill in the blanks for marginal utility.

b. If price per unit of X is RM25, calculate the quantity of X that will maximize the utility of this
consumer.

2. The table below shows the quantity and marginal utility obtained from consumption of 2 goods, that is X
and Y are RM2 respectively. It is assumed that the consumer’s income of RM22 only spent for these two goods.

Quantity Marginal Utility X Marginal Utility Y

1 30 20
2 29 19
3 28 18
4 26 16
5 24 14
6 22 12
7 20 10
8 18 8
9 16 5

a. Calculate MUx/Px and MUy/Py at every quantity level.

b. Calculate the quantity of X and Y at consumer equilibrium that will maximize the utility of this
consumer.
c. How much the total utility for both goods that maximize the utility.

3. What is the difference between cardinal utility and ordinal utility? Explain.