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OCW Scholar - Principles of Microeconomics
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I don't understand this questions and how the answers are figured. if the MU of good A is 30, wouldn't that be divided by the cost of A $2. Resulting in 15? How does this play in? 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?
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