Question: Use the table below to answer the following question. Assumethat the price of product A is $5, while the price for product B is$5. The
Use the table below to answer the following question. Assumethat 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 bundleis ____.
| 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 |
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