Question

Given price of potato chips Rs.15 per packet and Alubhujia Rs. 36 per packet and marginal utility derived from per packet of Alu-Bhujia 72 utils a consumer of both will maximize its total utility if the marginal utility per packet of Potato chips is _______.

• A. 9 utils
• B. 12 utils
• C. 6 utils
• D. 30 utils

Answer 1

The correct option is D 30 utils

Consumer Equilibrium in case of Two Goods Price of potato

chips packet $=15\left(PX\right)$

Alubhujia $=36\left(PY\right)$

MU of Alubhujia $=72\left(MUY\right)$

$M{U}_x=?$

Equilibrium $=\frac{M{U}_x}{P_x}=\frac{M{U}_y}{P_y}$

$\Rightarrow \frac{M{U}_x}{15}=\frac{72}{36}$

$M{U}_x=15\times 2$

$\therefore M{U}_x=30$

$\therefore$ The marginal utility per packet of potato chips is $30$ utilitis.