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).