a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? units of A units of B units of C units of D b. How many dollars will Ricardo choose to save? %24 c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule. +24 1 + $[ 1+ $_ + $ %24 00
a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? units of A units of B units of C units of D b. How many dollars will Ricardo choose to save? %24 c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule. +24 1 + $[ 1+ $_ + $ %24 00
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Columns 1 through 4 in the following table show Riccardo's marginal utility, measured in utils, derived from purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving, with prices of A, B, C, and D being $36, $12, $8, and $24, respectively. Ricardo has an income of $281.
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 |
|-------------------|----------------|-------------------|----------------|----------------------------|
| **Units of Good A** | **MU** | **Units of Good B** | **MU** | **Number of Dollars Saved** | **MU** |
| 1 | 72 | 1 | 24 | 1 | 5 |
| 2 | 54 | 2 | 15 | 2 | 4 |
| 3 | 45 | 3 | 12 | 3 | 3 |
| 4 | 36 | 4 | 9 | 4 | 2 |
| 5 | 18 | 5 | 7 | 5 | 1 |
| 6 | 18 | 6 | 5 | 6 | 0.50 |
| 7 | 15 | 7 | 3.5 | 7 | 0.25 |
| 8 | 12 | 8 | 1 | 8 | 0.13 |
**Instructions:** Enter your answers as a whole number.
a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility?
- [ ] units of A
- [ ] units of B
- [ ] units of C
- [ ] units of D
b. How many dollars will Ricardo choose to save?
- $[ ]
c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule.
\[ (\$[ ] \times [ ]) + (\$[ ] \times [ ]) + (\$[ ] \times [ ]) + (\$[ ] \](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F054bc800-dcc5-4a5b-84e3-f6d2bd1590bb%2F6a6007fe-40c7-4f4d-97a5-d5b07a829ab5%2Fotigdmbj.jpeg&w=3840&q=75)
Transcribed Image Text:Columns 1 through 4 in the following table show Riccardo's marginal utility, measured in utils, derived from purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving, with prices of A, B, C, and D being $36, $12, $8, and $24, respectively. Ricardo has an income of $281.
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 |
|-------------------|----------------|-------------------|----------------|----------------------------|
| **Units of Good A** | **MU** | **Units of Good B** | **MU** | **Number of Dollars Saved** | **MU** |
| 1 | 72 | 1 | 24 | 1 | 5 |
| 2 | 54 | 2 | 15 | 2 | 4 |
| 3 | 45 | 3 | 12 | 3 | 3 |
| 4 | 36 | 4 | 9 | 4 | 2 |
| 5 | 18 | 5 | 7 | 5 | 1 |
| 6 | 18 | 6 | 5 | 6 | 0.50 |
| 7 | 15 | 7 | 3.5 | 7 | 0.25 |
| 8 | 12 | 8 | 1 | 8 | 0.13 |
**Instructions:** Enter your answers as a whole number.
a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility?
- [ ] units of A
- [ ] units of B
- [ ] units of C
- [ ] units of D
b. How many dollars will Ricardo choose to save?
- $[ ]
c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule.
\[ (\$[ ] \times [ ]) + (\$[ ] \times [ ]) + (\$[ ] \times [ ]) + (\$[ ] \
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