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ADVANCED ANALYSIS Let MU A P A = z A = 15 1 x MU B P B = z B = 10 1 y
ADVANCED ANALYSIS Let
MUA PA = zA = 15 1x
MUB PB = zB = 10 1y,
where z is marginal utility per dollar measured in utils, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $19 to spend on A and Bthat is, x + y = 19.
Instructions: Enter your answers as a whole number.
- How is the $19 best allocated between A and B?
$ (blank) on A
and $(blank) on B
- How much utility will the marginal dollar yield?
(blank)utils
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