If the prices of A, B, and C are $2, $3, and $1, respectively, and the consumer has $26 to spend on these three products, what combination of the three products should be purchased in order to maximize utility?
Columns 1 through 3 in the table below show the marginal utility which a particular consumer would get by purchasing various quantities of products A, B, and C.
2 units of A, 6 units of B, and 4 units of C, shown by the fact that: 16/$2 = 24/$3 = 8/$1. The $26 in income is spent.
You might also like to view...
The table gives the demand and supply schedules for boat rides. If the supply of boat rides increases by 20 rides a day, the price will ________
A) remain unchanged B) fall to $6 a ride C) rise to $6 a ride D) rise to $10 a ride
A surplus means that the quantity supplied is greater than the quantity demanded at the prevailing price
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of a positive externality?
a. Sue not catching the flu because she got a flu vaccine b. Mary not catching the flu from Sue because Sue got a flu vaccine c. Sue catching the flu because she did not get a flu vaccine d. Mary catching the flu from Sue because Sue did not get a flu vaccine
The price of gold is $300 per ounce in New York and 2,550 pesos per ounce in Mexico City. If the law of one price holds for gold, the nominal exchange rate is ________ pesos per U.S. dollar.
A. 85.5 B. 8.5 C. 0.118 D. 1.18