30 14 B U₁ 24 40 The price of X is $20 and the price of Y is $40. U₂ If U₂ is the highest level of utility the consumer can achieve, the consumer's income is $ At point B utility-maximizing consumer will choose At the optimum Marginal Rate of Substitution is units of X.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Mukhi

30
14
A
B
U₁
0
24
40
The price of X is $20 and the price of Y is $40.
U2
If U₂ is the highest level of utility the consumer can achieve, the consumer's income is $
At point B utility-maximizing consumer will choose
X
At the optimum Marginal Rate of Substitution is
units of X
Transcribed Image Text:30 14 A B U₁ 0 24 40 The price of X is $20 and the price of Y is $40. U2 If U₂ is the highest level of utility the consumer can achieve, the consumer's income is $ At point B utility-maximizing consumer will choose X At the optimum Marginal Rate of Substitution is units of X
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