Question 1 (Continued) (c) A consumer has $240 to spend on sugar and rice. The price of sugar is $20 per unit and the pr
Posted: Thu Apr 28, 2022 11:35 am
- Question 1 Continued C A Consumer Has 240 To Spend On Sugar And Rice The Price Of Sugar Is 20 Per Unit And The Pr 1 (251.27 KiB) Viewed 27 times
Question 1 (Continued) (c) A consumer has $240 to spend on sugar and rice. The price of sugar is $20 per unit and the price of rice is $40 per unit. The table below shows the marginal utility of sugar and rice consumption for 1 to 5 units. Sugar Quantity 1 2 3 4 5 Marginal Utility Sugar 80 70 60 50 40 of Rice Quantity 1 2 3 4 5 Marginal Utility of Rice 240 200 160 100 40 How should the consumer allocate his budget on the two products using the rational spending rule? Explain. (4 marks)