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ADVANCED ANALYSIS Let: MUA/PA ZA= 10 -1 MUB/PB ZB= 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. Note: Px = $1 and Py = $1. Instructions: Enter your answers as a whole number. How is the $10 best allocated between A and B? $ on A and $ on B How much utility will the marginal dollar yield? utils Check my work

ADVANCED ANALYSIS Let: MUA/PA ZA= 10 -1 MUB/PB ZB= 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. Note: Px = $1 and Py = $1. Instructions: Enter your answers as a whole number. How is the $10 best allocated between A and B? $ on A and $ on B How much utility will the marginal dollar yield? utils Check my work

Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter5: Consumer Choice: Individual And Market Demand
Section: Chapter Questions
Problem 3DQ
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ADVANCED ANALYSIS Let: MUA/PA=ZA = 10 - 1 Instructions: Enter your answers as a whole number. How is the $10 best allocated between A and B? MUB/PB=ZB=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. Note: Px = $1 and Py = $1. LA on A and $ on B How much utility will the marginal dollar yield? utils Prev 1 of 7 Exit Submit Next > Check my work
Transcribed Image Text:ADVANCED ANALYSIS Let: MUA/PA=ZA = 10 - 1 Instructions: Enter your answers as a whole number. How is the $10 best allocated between A and B? MUB/PB=ZB=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. Note: Px = $1 and Py = $1. LA on A and $ on B How much utility will the marginal dollar yield? utils Prev 1 of 7 Exit Submit Next > Check my work
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