Jake allocates his budget of $24 per week among three goods. Use the following table of marginal utilities for good A, good B, and good C to answer the questions below.If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Jake purchase in equilibrium?If the price of A rises to $4 while other prices in Jake’s budget remain unchanged, how much does he purchase in equilibrium?Using the information from parts (a) and (b), draw the demand curve for good A. Be sure to indicate the price and quantity demanded for each point on the curve. **Assignment 6**Jake allocates his budget of $24 per week among three goods. Use the following table of marginal utilities for good A, good B, and good C to answer the questions below.| QA | MUA | QB | MUB | QC | MUC ||--------------|---------------|--------------|--------------|--------------|---------------|| 1 | 50 | 1 | 75 | 1 | 25 || 2 | 40 | 2 | 60 | 2 | 20 || 3 | 30 | 3 | 40 | 3 | 15 || 4 | 20 | 4 | 30 | 4 | 10 || 5 | 15 | 5 | 20 | 5 | 7.5 |**Questions:**a. If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Jake purchase in equilibrium?b. If the price of A rises to $4 while other prices in Jake’s budget remain unchanged, how much does he purchase in equilibrium?

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Answered: Jake allocates his budget of $24 per…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Jake allocates his budget of $24 per week among three goods. Use the following table of marginal utilities for good A, good B, and good C to answer the questions below.

If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Jake purchase in equilibrium
?If the price of A rises to $4 while other prices in Jake’s budget remain unchanged, how much does he purchase in equilibrium?
Using the information from parts (a) and (b), draw the demand curve for good A. Be sure to indicate the price and quantity demanded for each point on the curve.

**Assignment 6**

Jake allocates his budget of $24 per week among three goods. Use the following table of marginal utilities for good A, good B, and good C to answer the questions below.

| Q<sub>A</sub> | MU<sub>A</sub> | Q<sub>B</sub> | MU<sub>B</sub> | Q<sub>C</sub> | MU<sub>C</sub> |
|--------------|---------------|--------------|--------------|--------------|---------------|
| 1 | 50 | 1 | 75 | 1 | 25 |
| 2 | 40 | 2 | 60 | 2 | 20 |
| 3 | 30 | 3 | 40 | 3 | 15 |
| 4 | 20 | 4 | 30 | 4 | 10 |
| 5 | 15 | 5 | 20 | 5 | 7.5 |

**Questions:**

a. If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Jake purchase in equilibrium?

b. If the price of A rises to $4 while other prices in Jake’s budget remain unchanged, how much does he purchase in equilibrium?

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