Question
Quantity of Product A Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Product B Total Utility Marginal Utility Marginal Utility per Dollar 1
Quantity of Product A Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Product B Total Utility Marginal Utility Marginal Utility per Dollar 1 30 30
? 1
36
36
? 2
57
27
? 2
70
34
? 3
81
24
? 3
102
32
? 4
102
21
? 4
132
30
? 5
120
18
? 5
160
28
? 6
135
15
? 6
186
26
? 7
147
12
? 7
210
24
?
| Quantity of Product A | Total Utility | Marginal Utility | Marginal Utility per Dollar | Quantity of Product B | Total Utility | Marginal Utility | Marginal Utility per Dollar |
|---|---|---|---|---|---|---|---|
| 1 | 30 | 30 | ? | 1 | 36 | 36 | ? |
2 | 57 | 27 | ? | 2 | 70 | 34 | ? |
3 | 81 | 24 | ? | 3 | 102 | 32 | ? |
4 | 102 | 21 | ? | 4 | 132 | 30 | ? |
5 | 120 | 18 | ? | 5 | 160 | 28 | ? |
6 | 135 | 15 | ? | 6 | 186 | 26 | ? |
7 | 147 | 12 | ? | 7 | 210 | 24 | ? |
Your buddy Amanda wants your advice. She presents you with the utility schedule above and wants to know how many units of Product B she should purchase to maximize her utility. She tells you the price of Product A is $6 and the price of Product B is $10. Amanda informs you she only wants to spend $70.
How many units of Product B do you tell Amanda to purchase?
? unit of Product B
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International Economics
Authors: Thomas Pugel
16th Edition
0078021774, 9780078021770
