Question: please answer Use the following to answer questions (1) - (4): Aailyah is very fond of two local foods, namely Mchemsho (labeled M) and Ugali
please answer

Use the following to answer questions (1) - (4): Aailyah is very fond of two local foods, namely Mchemsho (labeled M) and Ugali (labeled U). Indeed, these are the only two goods she consumes. Further, suppose the price of Mchemsho is $4, the price of Ugali is $2, and Aailyah's income equals $20. The marginal utilities (MU) associated with various quantities of each good are provided in the table below: Mchemsho Ugali Quantity of M MU of M Quantity of U MU of U 32 24 N 28 N 20 W 24 w 16 A A 20 12 S 16 5 8 [1] The overall total utility (TU) from consuming 5 units of Mchemsho and 3 units of Ugali equals: A. 180 utils B. 150 utils C. 120 utils D. None of the above [2] Given her income and the prices of each good, Aailyah can afford to buy 2 units of M and 5 units of U. A. True B. False [3] The law of diminishing marginal utility applies to Mchemsho but not Ugali. A. True B. False (4] Wishing to maximize her overall total utility, subject to her budget constraint, Aailyah will consume units of Mchemsho and units of Ugali. A. 5:0 B. 1: 3 C. 3: 4 D. 4: 2
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
