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What level of total utility is realized from the equilibrium combination of J and K, if the consumer has a money income of $52 and the prices of J and K are $8 and $4, respectively

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Final answer:

The question is about finding the total utility at equilibrium for goods J and K given a consumer's budget and the prices of the goods. Without additional details on the consumer's preferences or utility functions, it is not possible to provide an exact value for total utility.

Step-by-step explanation:

The question is about determining the total utility realized from the consumption of goods J and K, given a consumer's budget and the prices of the goods. Based on the information provided, we know the income is $52, and the goods J and K have prices of $8 and $4, respectively. Equilibrium is reached when the consumer has allocated their budget in a way that maximizes their utility, with the marginal utility per dollar spent being equal across all goods they purchase. Unfortunately, without additional information such as the consumer's preferences, the specific quantities of J and K that maximize utility, or the utility values themselves, we cannot calculate the exact total utility.

The provided information about the demand curve and consumer surplus, along with examples involving quantities and prices of different points, help us to understand concepts of market equilibrium, but they do not directly help in calculating total utility without the utility function or preference data for goods J and K.

Finding equilibrium utility involves understanding the consumer's choices in the context of their budget constraint and the prices of the goods. The question seems to be aiming for a conceptual understanding of consumer surplus and how a consumer achieves equilibrium utility, rather than a specific numeric answer.

User Jverdi
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Final answer:

To determine the level of total utility from the equilibrium combination of J and K, we need to know the utility of each unit of J and K.

Step-by-step explanation:

The total utility from the equilibrium combination of J and K can be calculated by multiplying the quantity of each good consumed by the corresponding utility. In this case, the student needs to determine the quantity of J and K that can be purchased with the given money income and prices.

Since J and K have prices of $8 and $4 respectively, the maximum quantity of J that can be purchased is $52/$8 = 6.5 units. The maximum quantity of K that can be purchased is $52/$4 = 13 units.

To calculate the total utility, we need to know the utility of each unit of J and K. Unfortunately, the question does not provide this information. Without this information, it is not possible to determine the level of total utility.

User Askrynnikov
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