The utility schedule of a consumer for a brand of ice cream is shown in the table below. Use the information to answer the questions that follow: Units Cons...

Question 1 Report

 The utility schedule of a consumer for a brand of ice cream is shown in the table below. Use the information to answer the questions that follow: 
 

 Units Consumed (Q)  Total Utility (TU)  Marginal Utility (MU)
 0  0  -
 1  10  10
 2  19  R
 3  P  6
 4  30  5
 5  31  S
 6  Q  0
 7  29  -2

(a) Calculate the values of P,Q,and S. (8 marks).

(b) Given that the jprice of ice cream is $ 1.00 per unit, at what level of consumption is the consumer in equilibrium? Explain your answer. (3 marks).

(c) Use a graph sheet, draw the marginal utility curve.(3 marks).

(d) State the law of diminishing marginal utility. (3 marks).

 

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