Question: Columns 1 through 4 in the table below show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products

Columns 1 through 4 in the table below show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are $18, $6, $4, and $24, respectively, and that Ricardo has an income of $106.

a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility?
b. How many dollars will Ricardo choose to save?
c. Check your answers by substituting them into the algebraic statement of the utility-maximizingrule.

Column 2 Column 3 Column 4 Column 5 Column l Units Units Units Number of Units MUofD MU Dollars Saved Mu ofA MU of B 72 54 45 36 27 36 30 24 24 12 15 12

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