4
The following table shows the amounts of additional satisfaction (marginal utility) that Ross would get from consuming successive
quantities of products A and B.
Fill in the MU/P column for each product.
Instructions: Enter your answers rounded to one decimal place.
Units of
Good A
1
2
3
4
5
6
7
Price of Good A-56
MU of Good A
utils
72
66
60
54
48
42
36
MUP for A
Units of
Good B
1
2
3
4
5
6
7
Price of Good B-54
MU of Good B,
utils
48
42
O less of good A and less of good B.
O less of good A
O more of good A and less of good B
O less of good A and the same quantity of good B.
36
30
24
20
12
MU/P for B
If Ross has an income of $64, how many units of each will he purchase to maximize his utility?
Instructions: Enter your answers as a whole number.
units of good A
Junits of good B
Now suppose that the price of good A rises to $10. If he still has $64 to spend, then to maximize his utility, Ross should purchase