How is the $10 best allocated between a and b

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Let MUa=z=10-x and MUb=z=21-2y, where z is marginal utility per dollar measured in units. x is the amount spent in product A. y is the amount spent on product B. Assume that the consumer that the consumer has $10 to spend on A and B, that is x+y=10. How is the $10 best allocated between A and B?

Reference no: EM13339636

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