Jake allocates his budget of $24 per week among three goods. Use the following table of marginal utilities for good A, good B, and good C to answer the questions below.   QA MUA QB MUB QC MUC 1 50 1 75 1 25 2 40 2 60 2 20 3 30 3 40 3 15 4 20 4 30 4 10 5 15 5 20 5 7.5   If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Jake purchase in equilibrium?

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
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Jake allocates his budget of $24 per week among three goods. Use the following table of marginal utilities for good A, good B, and good C to answer the questions below.

 

QA

MUA

QB

MUB

QC

MUC

1

50

1

75

1

25

2

40

2

60

2

20

3

30

3

40

3

15

4

20

4

30

4

10

5

15

5

20

5

7.5

 

  1. If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Jake purchase in equilibrium?
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