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 rises to $4 while other prices in Jake’s budget remain unchanged, how much does he purchase in equilibrium?

Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 13PA
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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 rises to $4 while other prices in Jake’s budget remain unchanged, how much does he purchase in equilibrium?
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