Info in images ADVANCED ANALYSIS Let:MUA = z = 12 - 1xMUB = z = 15 - 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 productB. Assume that the consumer has $9 to spend on A and B-that is, x+ y= 9.Instructions: Enter your answers as a whole number.a. How is the $9 best allocated between A and B?on A and $on Bb. How much utility will the marginal dollar yield?utils The data below represent a demand schedule.ProductQuantityPriceDemanded$50104015302020251030Using the midpoint approach, determine the price elasticity of demand between each of the following prices:Instructions: Round your answers to two decimal places. Enter your answers as a positive value (absolute value).a. Between P = $50 and P2 = $40, Ed=b. Between P = $40 and P2 = $30, Ed=%3|c. Between P = $30 and P2 = $20, Ed=d. Between P1 = $20 and P2 = $10, Ed=

Answered: ADVANCED ANALYSIS Let: MUA = z = 12 -…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Elasticity Of Demand And Supply

Section: Chapter Questions

Problem 1.3P: (Categories of Price Elasticity of Demand) For each of the following absolute values of price...

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ADVANCED ANALYSIS Let:
MUA = z = 12 - 1x
MUB = z = 15 - 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 $9 to spend on A and B-that is, x+ y= 9.
Instructions: Enter your answers as a whole number.
a. How is the $9 best allocated between A and B?
on A and $
on B
b. How much utility will the marginal dollar yield?
utils

The data below represent a demand schedule.
Product
Quantity
Price
Demanded
$50
10
40
15
30
20
20
25
10
30
Using the midpoint approach, determine the price elasticity of demand between each of the following prices:
Instructions: Round your answers to two decimal places. Enter your answers as a positive value (absolute value).
a. Between P = $50 and P2 = $40, Ed=
b. Between P = $40 and P2 = $30, Ed=
%3|
c. Between P = $30 and P2 = $20, Ed=
d. Between P1 = $20 and P2 = $10, Ed=

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Hello. Since you have posted multiple questions and not specified which question needs to be solved, we will solve the first question for you. If you want any other specific question to be solved, then please resubmit only that question or specify that part only.

According to the question, the marginal utility for the two different goods is given. To maximize the total utility, we have the condition

MUa/Pa = MUb/Pb

So,

MUa = 12- x

MUb = 15 – 2y

And x + y = 9

Here Pa = 1, Pb = 1

Applying above condition

12 –x /1 = 15 -2y/1

12 – x = 15 -2y

-x + 2y = 3

Solving this equation and the budget line will give

-x + 2y = 3

x + y = 9

3y = 12

Y = 4

X = 5

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