Please help me, I will rate positive if correct! Thank you :)
Homework Answers
(a)
| Consumption level | Marginal Willingness to Pay | Total Willingness to pay |
| 0 | 5 | 5 |
| 1 | 4 | 9 |
| 2 | 3.2 | 12.2 |
| 3 | 2.6 | 14.8 |
| 4 | 2.2 | 17 |
| 5 | 1.8 | 18.8 |
| 6 | 1.5 | 20.3 |
Total willingness to pay is the sum of marginal willingness to pay.
The total willingness to pay at a consumption level of 4 apples is 17.
(b)
A person will consume till the point marginal willingness to pay is higher than or equal to price.
Price of apple is $2.40.
and marginal willingness to pay is higher than the price till the 3 units of apples,
So, this person would consumer 3 apples.
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Please help me, I will rate positive if correct! Thank you
:)
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