How is the dollar best allocated between a and b

Reference no: EM13241486

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: EM13241486

Questions Cloud

Explain oxides is acidic and basic : Predict whether each of the following oxides is acidic, basic, amphoteric, or neutral: CO2, NO2, Al2O3, CaO.

How much utility will the marginal dollar yield : 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 much utility will the marginal dollar yield

The pressure is changed and the temperature remains constant : a given mass of neon gas has a volume of 25.0 liters at a pressure of .75 atm. if the pressure is changed to 300.0 torr and the temperature remains constant , what will the volume of neon be

How high above the ground is the window : A man standing on the ground throws a pebble with an initial veloctiy of 14m/s at an angle of 70 degrees above the horizontal, How high above the ground is the window

How is the dollar best allocated between a and b : 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

How many popcycles will be sold per day in the long run : Currently, at a price of $1 each, 100 popcycles are sold per day in the perpetually hot town of Rostin. Consider the elastictiy of supply. In the long run a price increase from $1-$2 has an elastic supply of 1.5

Explain a capacitance cell was submerged into solution : 2 mL of 1,2-dichlorobenzene was added to a 250 mL volumetric flask, then it was diluted to 250 mL with benzene. A capacitance cell was submerged into this solution, then the cell was attached to a frequency counter. The frequency response was meas..

How fed should ease policy to stimulate the economy : But before the Fed can act, the presidents chief economic advisor holds a press conference and states that the Fed should ease its policy to stimulate the economy. Does this statement make easing the policy less or more di¢ cult for the Fed

Find the limiting angle of resolution with the oil : To increase the resolving power of a microscope, the object and the objective are immersed in oil (n = 1.54), what is the limiting angle of resolution with the oil

User Account

All Pages