Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and the price of beer is $5.00. Marginal utilities for each good are given below. Units MU P MU P / P P MU B MU B / P B 1st 18 6 40 8 2nd 15 5 30 6 3rd 12 4 25 5 4th 9 3 20 4 5th 6 2 15 3 6th 3 1 5 1 What Quantity of pretzels will Raymond purchase?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and the price of beer is $5.00. Marginal utilities for each good are given below.

Units MU _P MU _P/ P _P MU _B MU _B/ P _B

1st 18 6 40 8

2nd 15 5 30 6

3rd 12 4 25 5

4th 9 3 20 4

5th 6 2 15 3

6th 3 1 5 1

What Quantity of pretzels will Raymond purchase?

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