The table below shows the total utility a consumer gets from consuming two goods-- A and B.
Question:
Total Utility
Units
A
B
0
0
0
1
30
42
2
50
70
3
60
85
4
65
94
5
67
98
Assume that the price of good A is $5.00 per unit and the price of good B is $10.00 per unit.
a. For a budget of $55 how many units of each good would the consumer consume?
b. If the budget were to increase by $10, how many units of each good would the consumer consume?
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