There are two goods, apples and bananas. The price of apples is PA = $2,and the price of bananas is PB = $3. A consumer has $120 to spend, and his utility function is U(A,B)=2A2B3 a) With apples on the x axis, the slope of the budget line is ________ b) At A=2, B=1, the marginal utility of A is and the marginal utility of B is ________ c) At the optimal bundle, the consumer buys apples and bananas ______

There are two goods, apples and bananas. The price of apples is PA = $2,and the price of bananas is PB = $3. A consumer has $120 to spend, and his utility function is U(A,B)=2A2B3 a) With apples on the x axis, the slope of the budget line is __ b) At A=2, B=1, the marginal utility of A is and the marginal utility of B is c) At the optimal bundle, the consumer buys apples and bananas

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 1WNG

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