Question

Use the table below to answer the following question. Assume that the price of product A...

Use the table below to answer the following question. Assume that the price of product A is $5, while the price for product B is $5. The buyer has a budget of $20.

Q

MUA

MUB

1

18

18

2

16

16

3

14

14

4

12

12

5

10

10

6

8

8

7

6

6

8

4

4

9

2

2

10

0

0


Given the marginal utilities, price, and budget, the optimal bundle is ____.

A.

2 of product A and 3 of product B

B.

1 of product A and 3 of product B

C.

3 of product A and 2 of product B

D.

2 of product A and 2 of product B

E.

1 of product A and 1 of product B

0 0
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