Quantity of Subscriptions to otfice Productivity Apps per Year ame Quantity of S
ID: 1158669 • Letter: Q
Question
Quantity of Subscriptions to otfice Productivity Apps per Year ame Quantity of Subscriptions to Economics Statisties Apps per Year Due ast Wor Current Attempts: Refer to the above table and assume that each year this consumer buys only annual subsciptions to economics statistics apps and subscnptions to This hom productivity app is 540 per year if the consumer's avaiable income is $164 per year he will purchase a quantity o economics statistics apps and Total Utility (utils) 30 50 60 68 72 75 Total Utility (utils) 600 1,100 1,500 1,800 2,000 2,100 office productivity apps. The price of a subscription to each type of economics statistics app is $4 per year, and the subscription to each ofice office productivity apps each year at a consumer optimum IncExplanation / Answer
Quantity of Subscriptions to Economics statistics apps per year
Quantity of Subscriptions to Office productivity apps per year
Q
TU
MU
Q
TU
MU
1
30
1
600
2
50
20
2
1100
500
3
60
10
3
1500
400
4
68
8
4
1800
300
5
72
4
5
2000
200
6
75
3
6
2100
100
The consumer would buy based on the maximum utility derived, which is calculated using marginal utility. As the marginal utility is maximum for office productivity apps, the consumer would buy 4 units of office productivity
So, 4*40 = $160 would be spent for office productivity where as with the remaining $4, one unit of Economics statistics apps would be bought.
Quantity of Subscriptions to Economics statistics apps per year
Quantity of Subscriptions to Office productivity apps per year
Q
TU
MU
Q
TU
MU
1
30
1
600
2
50
20
2
1100
500
3
60
10
3
1500
400
4
68
8
4
1800
300
5
72
4
5
2000
200
6
75
3
6
2100
100