Let MU A = z = 10 - x and MU B = z = 21 -

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Let MUA = z = 10 - x and MUB = z = 21 - 2y, where is marginal utility per dollar measured in utils, is the amount spent on product A, and is the amount spent on product B. Assume that the consumer has $10 to spend on A and B—that is, + = 10. How is the $10 best allocated between A and B? How much utility will the marginal dollar yield?

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Microeconomics Principles, Problems and Policies

ISBN: 978-1259450242

20th edition

Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn

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