A community for students. Sign up today!
Here's the question you clicked on:
 0 viewing
 one year ago
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 goods mary is purchasing?
b. If mary has chosen to keep $10 in savings, what is the ratio of MU to P for savings?
 one year ago
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 goods mary is purchasing? b. If mary has chosen to keep $10 in savings, what is the ratio of MU to P for savings?

This Question is Open

TAIWORIDWAN
 one year ago
Best ResponseYou've already chosen the best response.0the answer involves simple mathematical equation which i may not be able to state explicitly because i don't know how to use the equation option. The requirement for equilibrium for two or more commodities is MUx/Px= MUy/Py .following this equilibrium condition to solve for all unknown MU of B, C, D and all other goods, lets say E. We have muA/PA=muB/pB=muC/pC=muD/pD=muE/pE. solving one by one,we have \[30/2=B/4\] \[B=30\times4/2\] B=120/2 muB= 60 YOU CAN GET OTHER VALUES OF muC,muD,muE by equating the already known values with them. u should get muC=45, muD=15, muE=75 .....BEST OF LUCKCOLLEAGUE
Ask your own question
Ask a QuestionFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.