Answer the following questions using the following information Columns 1 and 2 in the table below show the marginal utiity that Cody gets by purchasing products A and B. Column 3 shows the marginal utity Cody gets from saving Assume that the price of Ais $13 the price of B is $10, and Cody has an income of $129. a) Find the following senes of MU/S for each column. Note: Keep as much precision as possible during your calculations Your final answer should be accurate to at least two decimal places Column 1 Column 2 Column 3 Units of A MU MU/S Units of B MU MU/S Number of S saved MU MU/S 6.8 13 10 0 70 80 6.15 1. 68 1. 0. 2 71 5 46 2. 63 6.3 2 3 3 56 5.6 3 66 5.08 61 4.69 4 4 46 4.6 4. 3 0 54 4 15 3.46 39 3 2.23 4 31 3.1 22 5 40 45 6. 6. 7. 7 22 7 1. 8 29 8. 17 1.7 1 0. b) What quantities of A and B will Cody purchase in maximizing his utility? Quantity of A O Quantity of B.0 c) How many dollars will Cody save? Dollars Saved $0 SAVE AND CLOSE
Answer the following questions using the following information Columns 1 and 2 in the table below show the marginal utiity that Cody gets by purchasing products A and B. Column 3 shows the marginal utity Cody gets from saving Assume that the price of Ais $13 the price of B is $10, and Cody has an income of $129. a) Find the following senes of MU/S for each column. Note: Keep as much precision as possible during your calculations Your final answer should be accurate to at least two decimal places Column 1 Column 2 Column 3 Units of A MU MU/S Units of B MU MU/S Number of S saved MU MU/S 6.8 13 10 0 70 80 6.15 1. 68 1. 0. 2 71 5 46 2. 63 6.3 2 3 3 56 5.6 3 66 5.08 61 4.69 4 4 46 4.6 4. 3 0 54 4 15 3.46 39 3 2.23 4 31 3.1 22 5 40 45 6. 6. 7. 7 22 7 1. 8 29 8. 17 1.7 1 0. b) What quantities of A and B will Cody purchase in maximizing his utility? Quantity of A O Quantity of B.0 c) How many dollars will Cody save? Dollars Saved $0 SAVE AND CLOSE
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.3P
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