1. A consumer has an income of $3024 to spend each day. The only two goods the consumer is interested in purchasing are goods A and B. The marginal-utility schedules for these two goods are shown in the table below. The price of B does not change and is $378. The marginal utility per dollar from B is also shown in the table. But the price of A varies as shown in the table. The marginal utility per dollar from A when the price of A is $1512 and $756 is shown in the following table. Good A Good B Quantity MU MU/$1512 MU/$756 MU MU/$378 1 2 3 4 5 6 48 32 24 16 8 4 |||| 24 15 12 8 6 4 ||||
1. A consumer has an income of $3024 to spend each day. The only two goods the consumer is interested in purchasing are goods A and B. The marginal-utility schedules for these two goods are shown in the table below. The price of B does not change and is $378. The marginal utility per dollar from B is also shown in the table. But the price of A varies as shown in the table. The marginal utility per dollar from A when the price of A is $1512 and $756 is shown in the following table. Good A Good B Quantity MU MU/$1512 MU/$756 MU MU/$378 1 2 3 4 5 6 48 32 24 16 8 4 |||| 24 15 12 8 6 4 ||||
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 8SQP
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Transcribed Image Text:1. A consumer has an income of $3024 to spend each day. The only two goods the
consumer is interested in purchasing are goods A and B. The marginal-utility
schedules for these two goods are shown in the table below. The price of B does not
change and is $378. The marginal utility per dollar from B is also shown in the table.
But the price of A varies as shown in the table. The marginal utility per dollar from
A when the price of A is $1512 and $756 is shown in the following table.
Good A
Good B
Quantity
MU
MU/$1512 MU/$756
MU
MU/$378
1
24
2
15
3
12
4
8
5
6
6
4
48
32
24
16
8
4
|||||
|||||
|||
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