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tealyak882Lv1
15 May 2020
Let MUA = z = 10 - x and MUB = z = 21 - 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B—that is, x + y = 10.
A) How is the $10 best allocated between A and B?
B) How much utility will the marginal dollar yield?
Let MUA = z = 10 - x and MUB = z = 21 - 2y, where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $10 to spend on A and B—that is, x + y = 10.
A) How is the $10 best allocated between A and B?
B) How much utility will the marginal dollar yield?
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2 Jun 2021
