Quantity of Subscriptions to Economics Statistics Apps per Year Quantity of Subs
ID: 1158509 • Letter: Q
Question
Quantity of Subscriptions to Economics Statistics Apps per Year Quantity of Subscriptions to Office Total Utility (utils) 30 50 60 68 72 75 Total Utility (utils) 600 1,100 1,500 1,800 2,000 2,100 Productivity Apps per Year 5 Refer to the above table and assume that each year this consumer buys only annual subscriptions to economics statistics apps and subscriptions to office productivity apps. The price of a subscription to each type of economics statistics app is $4, and the subscription to each office productivity app is $40 per year. If the consumer's available income is $252 per year, the consumer will purchase economics statistics app[(s) and office productivity app(s If the consumers available income falls to $208, what will be the new combination of economics statistics apps and office productivity apps? economics statistics app(s):and office productivity app[(s):Explanation / Answer
Economic Total Marginal MU/Price Productivity Total Marginal MU/Price Apps Qty Utility Utility Apps Qty Utility Utility 1 30 30 7.5 1 600 600 15 2 50 20 5 2 1100 500 12.5 3 60 10 2.5 3 1500 400 10 4 68 8 2 4 1800 300 7.5 5 72 4 1 5 2000 200 5 6 75 3 0.75 6 2100 100 2.5 Marginal Utility / price of Economic and Productivity is equal at combination of: 6 units of Productivity app and 3 units of Economic app (at this level of consumption Income is also wholy consumed) The consumer must purchase 3 units of Economic and 6 units of Productivity app. When the income reduce to $ 208, the consumption will be: 2 units of Economics and 5 units of Productivity app.