A consumer has $220 in monthly income to be spent on two goods Z and B. The price of good Z (P,) is $7.00. The Marginal Rate of Transformation (MRT) is equal to - 2. That is 2 units of good B can be traded for 1 unit of good Z. What is the price of good B? $ 3.5 (round your answer to the nearest penny). How many units of good B can be purchased if all income is used for that good? units (round your answer to two decimal places).
A consumer has $220 in monthly income to be spent on two goods Z and B. The price of good Z (P,) is $7.00. The Marginal Rate of Transformation (MRT) is equal to - 2. That is 2 units of good B can be traded for 1 unit of good Z. What is the price of good B? $ 3.5 (round your answer to the nearest penny). How many units of good B can be purchased if all income is used for that good? units (round your answer to two decimal places).
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 15SQ
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Transcribed Image Text:A consumer has $220 in monthly income to be spent on two goods Z and B.
The price of good Z (P,) is $7.00.
The Marginal Rate of Transformation (MRT) is equal to - 2. That is 2 units of good B can be traded for 1 unit of good Z.
What is the price of good B? $ 3.5 (round your answer to the nearest penny).
How many units of good B can be purchased if all income is used for that good? units (round your answer to two decimal places).
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