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 |
Homework Answers
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