Suppose Mary is in consumer equilibrium. The marginal utility of good A is 30, and the price

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Suppose Mary is in consumer equilibrium. The marginal utility of good A is 30, and the price of good A is $$2$.

a. If the price of good B is $$4,$ the price of good C is $$3,$ the price of good D is $$1,$ and the price of all other goods and services is $$5,$ what is the marginal utility of each of the goods Mary is purchasing?

b. If Mary has chosen to keep $$10$ in savings, what is the ratio of MU to P for savings?

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Economics

ISBN: 9781032046723

9th Edition

Authors: William Boyes, Michael Melvin

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Question Posted: Apr 23, 2024 08:41 AM

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Suppose Mary is in consumer equilibrium. The marginal utility of good A is 30, and the price

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To solve this question we need to use the principle of consumer equilibrium which occurs when the co...View the full answer

Economics

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