The marginal utility schedule for goods A and B are given. Price of both the goods is Rs 1 each and the income of Ms. Nidhi is assumed to be Rs 8. Determine, how many units of both the commodities should be purchased by Nidhi to maximize her total utility. Also, calculate the total utility at the point of equilibrium.

The marginal utility schedule for goods A and B are given. Price of bo

1.	The marginal utility schedule for goods A and B are given. Price of both the goods is Rs 1 each and the income of Ms. Nidhi is assumed to be Rs 8. Determine, how many units of both the commodities should be purchased by Nidhi to maximize her total utility. Also, calculate the total utility at the point of equilibrium.
Answer» Solution :MS. Nidhi should PURCHASE 5 UNITS of GOOD A and 3 units of good B; total utility=113 units