If MUa/Pa = 100/$35 = MUb/Pb = 300/? = MUc/Pc = 400/?, the prices of products b and c in consumer equilibrium:

A) cannot be determined from the information given.
B) are $105 and $140 respectively.
C) are $105 and $175 respectively.
D) are $100 and $200 respectively.


Answer: B) are $105 and $140 respectively.

Economics

You might also like to view...

If a monopolist practices perfect price discrimination

A) consumers surplus will be equal to the deadweight loss. B) consumer surplus will be zero. C) the firm will break even in the long run. D) producer surplus will equal consumer surplus.

Economics

In the country levying the tariff, the tariff will

A) increase both consumer and producer surplus. B) decrease both the consumer and producer surplus. C) decrease consumer surplus and increase producer surplus. D) increase consumer surplus and decrease producer surplus. E) decrease consumer surplus but leave producers surplus unchanged.

Economics

Consumption spending is __________ and investment spending is __________ in the Keynesian model

A) autonomous; autonomous B) autonomous; induced C) induced; autonomous D) induced; induced

Economics

The Global South provides college educations to a large fraction of their populations.

Answer the following statement true (T) or false (F)

Economics