written by Daurie Augostine

-- written by Daurie Augostine



Saturday, February 6, 2010

Consumer Demand Theory --- Optimal Purchase

Utility represents how much you are willing to pay.
Price represents how much you must pay.

Using the same numbers for TU and MU, suppose the price of Vitamin Water equals $1.49 each. How many will you purchase?

Answer: Two
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