Good B to buy (change in goodyr (change in units) Marginal _ Utility Marginal Utility .|______.-.-.______. ._I___.....___ ...-.-._____.|.____.....__L.-.______ ____.-_....| I I I I l I .............................. I.._._._._._._._ ...._._._._._._._._._._._._._._L._._._._._....._._._._._._._._.._._._._._ _._.....I.._._._._._._....._._._._._._._....._._..l ............................................................ I If a consumer has $12 to spend, and the Price of Good A is $4 and the Price of Good B is $1? a. State the utility maximizing rule. The utility maximizing rule states that consumers should spend their income in a way that allows them to get the most marginal utility per dollar and highest total utility. b. Set up the new columns in the chart and then determine how many units of Good A and how many units of Good B will the consumer buy? (2 points each column) c. Explain how you determined the number purchased of A and B. 4 units of good B and 2 units of good A should be purchased because 4 units of B is 4 dollars and 2 units of good A is 8 dollars. $4+B=12 and they have the same marginal utility per dollar