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Question 2 [33 points] Answer the following questions using the following information Columns 1 and 2 in the table below show the marginal utility
Question 2 [33 points] Answer the following questions using the following information Columns 1 and 2 in the table below show the marginal utility that Cody gets by purchasing products A and B. Column 3 shows the marginal utility Cody gets from saving. Assume that the price of A is $12, the price of B is $8, and Cody has an income of Sl 39. a) Find the following series of MUIS for each column Note: Keep as much precision as possible during your calculations Your final answer should be accurate to at least two decimal places. Column 1 nits of A MIJ Column 2 MIJ/S UnitsofB MIJ Column 3 MIJ/S Number of S saved MIJ MIJ 2 3 4 5 6 7 8 62 54 48 43 34 24 16 7 5.17 4.5 4 358 2.83 2 1.3 0.58 2 3 4 5 6 7 8 59 51 45 40 35 29 21 16 7 38 6.38 5.63 5 4.38 363 2 63 2 5 2 5 2 2 3 4 5 6 7 8 b) What quantities of A and B will Cody purchase in maximizing his utility? Quantity of A: 0 Quantity of 8 c) How many dollars will Cody save? Dollars Saved = SO
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