Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and the price of beer is $5.00. Marginal utilities for each good are given below. Units MU P MU P / P P MU B MU B / P B 1st 18 6 40 8 2nd 15 5 30 6 3rd 12 4 25 5 4th 9 3 20 4 5th 6 2 15 3 6th 3 1 5 1 If Raymond is maximizing his utility, then
Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and the price of beer is $5.00.
Units MU P MU P / P P MU B MU B / P B
1st 18 6 40 8
2nd 15 5 30 6
3rd 12 4 25 5
4th 9 3 20 4
5th 6 2 15 3
6th 3 1 5 1
If Raymond is maximizing his utility, then
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