hitesh buys pizza and coke. the marginal utility of last peice of pizza is 80 utils and od last sip of coke is 40 utils. the price of pizza is rs40 and of coke if rs 20. this means hitesh buys
i)more of pizza and less coke,
ii)more of cork and less of pizza,
iii)both at optional level s
iv) same quantity of both

Dear student
Marginal utility refers to the addition to total utility due to consumption of an additional unit of commodity. On the other hand, price refers to the amount paid in return for obtaining a unit of commodity for consumption. The two are related in the sense that at the point of consumer's equilibrium marginal utility of a rupee spent on the commodity is equal to the marginal utility of money.
So, option D is correct.
Regards

  • 2
What are you looking for?