The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18. Which of the following price-quantity schedules would represent the demand for X in the $2 and $3 price range?

A) option A
B) option B
C) option C
D) option D

Question

The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18.

Which of the following price-quantity schedules would represent the demand for X in the $2 and $3 price range?
The table shows the total utility data for products X and Y. Assume that the prices of X and Y are $3 and $4, respectively, and that consumer income is $18. Which of the following price-quantity schedules would represent the demand for X in the $2 and $3 price range? A) option A B) option B C) option C D) option D

A) option A 
B) option B 
C) option C 
D) option D

Quizplus · Accepted Answer

To determine the demand for X at the $2 and $3 price range, we need to look at the total utility data for X when the price of X is at $2 and $3, and then calculate the quantity demanded of X at each price point based on the consumer's budget constraint.
At $2, the quantity demanded of X is 3, and at $3, the quantity demanded of X is 2. This is because at a lower price of $2, the consumer can afford to buy more of X within their budget constraint, but at a higher price of $3, the consumer can only afford to buy 2 units of X within their budget constraint. Therefore, option C, which shows a quantity demanded of 3 at a price of $2 and a quantity demanded of 2 at a price of $3, represents the demand for X in the $2 and $3 price range.

The Table Shows the Total Utility Data for Products X