A consumer has $220 in monthly income to be spent on two goods Z and B. The price of good Z (P,) is $7.00. The Marginal Rate of Transformation (MRT) is equal to - 2. That is 2 units of good B can be traded for 1 unit of good Z. What is the price of good B? $ 3.5 (round your answer to the nearest penny). How many units of good B can be purchased if all income is used for that good? units (round your answer to two decimal places).
A consumer has $220 in monthly income to be spent on two goods Z and B. The price of good Z (P,) is $7.00. The Marginal Rate of Transformation (MRT) is equal to - 2. That is 2 units of good B can be traded for 1 unit of good Z. What is the price of good B? $ 3.5 (round your answer to the nearest penny). How many units of good B can be purchased if all income is used for that good? units (round your answer to two decimal places).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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 alt="A consumer has $220 in monthly income to be spent on two goods Z and B.
The price of good Z (P,) is $7.00.
The Marginal Rate of Transformation (MRT) is equal to - 2. That is 2 units of good B can be traded for 1 unit of good Z.
What is the price of good B? $ 3.5 (round your answer to the nearest penny).
How many units of good B can be purchased if all income is used for that good? units (round your answer to two decimal places).
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Transcribed Image Text:A consumer has $220 in monthly income to be spent on two goods Z and B.
The price of good Z (P,) is $7.00.
The Marginal Rate of Transformation (MRT) is equal to - 2. That is 2 units of good B can be traded for 1 unit of good Z.
What is the price of good B? $ 3.5 (round your answer to the nearest penny).
How many units of good B can be purchased if all income is used for that good? units (round your answer to two decimal places).
Ctv
15
MacBook Air
DI
DD
80
F9
esc
F5
F6
F7
F1
F2
F3
!
@
23
&
4
7
8
9
1
Q
W
E
Y
tab
A
S
F
G
つ
K
caps lock
C
V
M
shift
fn
control
option
command
つ
エ
T
* *
リ
く
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