Micro Assignment Utility Theory.docx

# Micro Assignment Utility Theory.docx - Micro...

• Homework Help
• 1
• 100% (1) 1 out of 1 people found this document helpful

This preview shows page 1. Sign up to view the full content.

Micro Assignment-Utility Theory #1 Part 1 Budget= \$9 Product A Price= \$1 Product B Price=\$3 Units Marginal Utility of A MU/\$ of A Units Marginal Utility of B MU/\$ of B 1 10 10 1 30 10 15 2 9 9 2 24 8 12 3 8 8 3 18 6 9 4 7 7 4 12 4 6 5 6 6 5 6 2 3 Calculate the MU/\$ for each product, then spend the budget. How much of each product does the buyer buy? \$9.00-1-3-1-3-1=0 3A and 2B Part 2 Now assume the price of product B is \$2. Price of A is still \$1. Recalculate the MU/\$ of B and determine how much of product A and B the buyer chooses. \$9.00-2-2-2-1-1-1=0 3A and 3B Using the resulting two prices and quantities of product B from parts 1 and 2, plot the points on a line
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern