Daniel allocates his budget of $24 per week among three goods. Use the following table of the marginal utilities for Good A, Good B, and Good C to answer the questions below:

a. If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Daniel purchase in equilibrium?
b. If the price of A rises to $4 while the other prices and Daniel€™s budget remain unchanged, how much of each does he purchase in equilibrium?
c. Using the information from parts (a) and (b), draw the demand curve for good A. Be sure to indicate the price and quantity for each point on the curve.

Transcribed Image Text:

25 20 15 10 75 2117 12345 50000 76432 1 2 3 4 5 00005 54321 12345