There are two consumers and two goods (A and B) in a competitive economy. At the competitive equilibrium, each consumer's MRSAB of good A for good B is 7, which means each would be willing to trade 7 units of good B for one unit of good A. The price of good A is $15. What is the price of good B?

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter1: The Economic Approach
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There are two consumers and two goods (A
and B) in a competitive economy. At the
competitive equilibrium, each consumer's
MRSAB of good A for good B is 7, which
means each would be willing to trade 7
units of good B for one unit of good A. The
price of good A is $15. What is the price of
good B?
Transcribed Image Text:There are two consumers and two goods (A and B) in a competitive economy. At the competitive equilibrium, each consumer's MRSAB of good A for good B is 7, which means each would be willing to trade 7 units of good B for one unit of good A. The price of good A is $15. What is the price of good B?
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