CAIE A-Level Economics A2 7.1.3 Equi Marginal Principle Questions

Practise applying the equi-marginal principle to allocate spending across goods using marginal utility, prices, tables and consumer-equilibrium questions.

Syllabus
2026–2028
Course
Economics 9708
Level
A2

Exam points

  • Apply the equi-marginal principle by allocating expenditure so marginal utility per unit of currency is equal across goods.

CAIE A-Level Economics A2 7.1.3 Equi Marginal Principle Questions question 1

[Maximum number: 1]

The price of good S is $ 6 and the price of good T is $ 8. A consumer's marginal utility for each good is shown.

Table for Question CAIE A-Level Economics A2 7.1.3 Equi Marginal Principle Questions question 1 — CAIE A-Level Economics A2

If this consumer wants to maximise total utility, which combination of goods would they consume?

good\operatorname{good} S

good\operatorname{good} T

1

1

2

1

3

4

5

5

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