1. You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table below. If your income is $12 and the prices of X and Y are $2 and $1, respectively, (A) what quantities of each will you purchase to maximize utility? (B) What is the total utility of your purchases? Units of X 1 2 3 4 5 6 MU 10 8 6 4 32 Units of Y 1 2 3 4 5 6 MU 8 7 6 5 4 3
1. You are choosing between two goods, X and Y, and your marginal utility from each is as shown in the table below. If your income is $12 and the prices of X and Y are $2 and $1, respectively, (A) what quantities of each will you purchase to maximize utility? (B) What is the total utility of your purchases? Units of X 1 2 3 4 5 6 MU 10 8 6 4 32 Units of Y 1 2 3 4 5 6 MU 8 7 6 5 4 3
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter6: Consumer Choices
Section: Chapter Questions
Problem 10RQ: What is the rule relating the ratio of marginal utility to prices of two goods at the optimal...
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Hi, please answer A and B.
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