Use the following table to answer these questions. TU stands for total utility. a. What is the

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Use the following table to answer these questions. TU stands for total utility.

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a. What is the marginal utility (MU) of each unit? (Provide your answer in the form of a table.) Is marginal utility increasing or diminishing?

b. If the consumer has $7 to spend and both goods cost $1, how many of each should the consumer buy?

c. If the price of good Y goes to $2 while income remains at $7, what will happen to the amounts demanded?

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Economics Barrons Business Review Series

ISBN: 9781438008776

6th Edition

Authors: Walter J. Wessels

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Question Posted: Feb 18, 2024 04:00 AM

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Use the following table to answer these questions. TU stands for total utility. a. What is the

Question:

Units TU of Good X TU of Good Y 1 12 14 2 20 22 | 3 24 24 4 26 24 5 26 22

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a There is diminishing marginal utility b When each unit costs 1 ...View the full answer

Economics Barrons Business Review Series

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