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?
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?
Chapter1: Making Economics Decisions
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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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff1a6a85a-8257-4719-be79-635934329612%2F903be933-09dc-4cd3-a423-b3ef0f0a6a2c%2F0lvcslv_processed.jpeg&w=3840&q=75)
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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