The table below shows the total utility a consumer gets from consuming two goods-- A and B.

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The table below shows the total utility a consumer gets from consuming two goods-- A and B.
Total Utility 
Units 
A 
B 
0 
0 
0 
1 
30 
42 
2 
50 
70 
3 
60 
85 
4 
65 
94 
5 
67 
98 
Assume that the price of good A is $5.00 per unit and the price of good B is $10.00 per unit.
a. For a budget of $55 how many units of each good would the consumer consume?
b. If the budget were to increase by $10, how many units of each good would the consumer consume?
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Agricultural Economics

ISBN: 978-0136071921

3rd edition

Authors: Evan Drummond, John Goodwin

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