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micro economic 8. Suppose two roommates are thinking of buying a stove for their apartment. Al's utility function is: UA(S, MA) = (1 + S)MA

micro economic

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8. Suppose two roommates are thinking of buying a stove for their apartment. Al's utility function is: UA(S, MA) = (1 + S)MA Bob's utility function is: UB(S, MB) = (3 + S)MB S is equal to 0 or 1 (depending on whether a stove is bought) and MA and Me represent the amount of money they have to spend. Al's total wealth is unknown, and Bob has a total wealth of $2,000. If you know that the maximum amount they are willing to pay for a stove (combined) is $1,200, what is Al's wealth? (8 points)

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