Question

The marginal utility of the BD	Marginal utility	Total benefit	units	The marginal utility of the BD	Marginal utility	Total benefit	units
		0	0			0	0
		51	1			78	1
		90	2			120	2
		123	3			156	3
		150	4			186	4
		171	5			210	5
		183	6			228	6
		192	7			245	7
		198	8			260	8
		201	9			267	9

Solve the table below and question:

If you know the price of the good X = 6 dinars, the price of the good Y = 3 dinars, and enter the consumer = 48 dinars. Calculate the balance of the consumer who achieves the maximum satisfaction for him through spending his entire income, with the solution steps explained through the previous table?

the table is need to calculate the marginal utility and than with the currency of bahrain (BD)

Answer 1

Income = 48

Price of good X = 6

Price of good Y = 3

Marginal utility per dollar is calculated as (marginal utility / price of good) where marginal utility is change in total benefit due to change in 1 unit of that good.

Good Y	Good X
Units	Total benefit	Marginal utility	Marginal utility per dollar	Units	Total benefit	Marginal utility	Marginal utility per dollar
0	0	0	-	0	0	0	-
1	51	51	17 (1st)	1	78	78	13 (2nd or 3rd)
2	90	39	13 (2nd or 3rd)	2	120	42	7 (6th or 7th)
3	123	33	11 (4th)	3	156	36	6 (8th)
4	150	27	9 (5th)	4	186	30	5 (9th)
5	171	21	7 (6th or 7th)	5	210	24	4 (10th or 11th)
6	183	12	4 (10th or 11th)	6	228	18	3
7	192	9	3	7	245	17	2.83
8	198	6	2	8	260	15	2.5
9	201	3	1	9	267	7	1.16

Consumer will give more preference to good with higher marginal utility per dollar to gain maximum satisfaction from the money they spend.

Consumer will consume 6 units of good Y and 5 units of good X to maximize their satisfaction. From this consumption bundle, consumer will spend all of income and left with nothing.