Question

Ice creams sell for Rs.30 Laxmi who loves ice cream, has already eaten 3.Her MU from eating 3 ice cream is 90.Suppose further that ,for her, the MU of one rupee is 3.Should she eat more ice cream or should she stop?

Answer 1

Explanation:

Given Ice creams sell for Rs.30 Laxmi who loves ice cream, has already eaten 3.Her MU from eating 3 ice cream is 90.Suppose further that ,for her, the MU of one rupee is 3.Should she eat more ice cream or should she stop?

• So ice creams are sold at Rs 30 and Laxmi has already eaten 3 ice creams and the cost of it is Rs 90.
• So the consumer’s equilibrium we have  
•                Price = Marginal utility of the product / Marginal utility of a rupee
•                    So we have  
•                     Marginal utility of ice cream / Marginal utility of rupee
•                                   = 90 / 3
•                                   = Rs 30 which is the price of ice cream.
•  So by eating the three ice creams the consumer is in the state of equilibrium and should not consume more ice creams.

Reference link will be

https://brainly.in/question/12663946