Instructions: Enter your answers as a whole number. a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? 4 units of A 1 8 units of B 3 units of C units of D b. How many dollars will Ricardo choose to save? $ 17 * c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule. ($ 36 O 4 + $ 24 8 x 1 8 + $ 8. 3. + $ 24 O x 3 + $ 17 281 O
Instructions: Enter your answers as a whole number. a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility? 4 units of A 1 8 units of B 3 units of C units of D b. How many dollars will Ricardo choose to save? $ 17 * c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule. ($ 36 O 4 + $ 24 8 x 1 8 + $ 8. 3. + $ 24 O x 3 + $ 17 281 O
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
Info in images
![Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various
amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C,
and D are, respectively, $36, $12, $8, and $24 and that Ricardo has an income of $281.
Column 1
Column 2
Column 3
Column 4
Column 5
Units of
Units of
Units of
Units of
Number of
MU
MU
MU
MU
MU
Good A
Good B
Good C
Good D
Dollars Saved
1
72
1
24
1
15
1
36
1
2
54
15
12
2
30
2
4
45
12
24
4
36
4
4
7
4
18
4
2
27
7
5
13
1
18
6.
6.
4
6.
7
6.
0.50
7
15
7
2
7
3.5
7
4
7
0.25
12
8
1
3
8
2
8
0.13](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23421e53-523d-46bd-b83d-7af5caab11a7%2Fc94a65d6-595c-4a2d-b0cd-c7a7214e3ec1%2Fuq8ltkc6_processed.png&w=3840&q=75)
Transcribed Image Text:Columns 1 through 4 in the following table show the marginal utility, measured in utils, that Ricardo would get by purchasing various
amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C,
and D are, respectively, $36, $12, $8, and $24 and that Ricardo has an income of $281.
Column 1
Column 2
Column 3
Column 4
Column 5
Units of
Units of
Units of
Units of
Number of
MU
MU
MU
MU
MU
Good A
Good B
Good C
Good D
Dollars Saved
1
72
1
24
1
15
1
36
1
2
54
15
12
2
30
2
4
45
12
24
4
36
4
4
7
4
18
4
2
27
7
5
13
1
18
6.
6.
4
6.
7
6.
0.50
7
15
7
2
7
3.5
7
4
7
0.25
12
8
1
3
8
2
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?
4
units of A
1
* units of B
units of C
3
units of D
b. How many dollars will Ricardo choose to save?
17
c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule.
36
4
+ $
24
1 *
+ $
8
3
+ $
24
3
17
2$
281
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23421e53-523d-46bd-b83d-7af5caab11a7%2Fc94a65d6-595c-4a2d-b0cd-c7a7214e3ec1%2F4lxlygd_processed.png&w=3840&q=75)
Transcribed Image Text:Instructions: Enter your answers as a whole number.
a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility?
4
units of A
1
* units of B
units of C
3
units of D
b. How many dollars will Ricardo choose to save?
17
c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule.
36
4
+ $
24
1 *
+ $
8
3
+ $
24
3
17
2$
281
%24
%24
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education