Homework Answers
The utility is maximized when MU Apples/price of apples=mu bagels/price of bagels=MU cereals/price of cereals
this happens when the marginal utilities by price is equal.
| QUANTITY | A | B | C |
| 1 | 5 | 20 | 30 |
| 2 | 5 | 18 | 24 |
| 3 | 5 | 16 | 21 |
| 4 | 5 | 14 | 18 |
| 5 | 5 | 12 | 12 |
| 6 | 4 | 9 | 9 |
| 7 | 4 | 9 | 7 |
| 8 | 3 | 7 | 3 |
| 9 | 3 | 5 | 3 |
| 10 | 3 | 5 | 3 |
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