Where z is marginal utility per dollar spen

Reference no: EM13334542

ADVANCED ANALYSIS Given the following:

zA = 16 - 3x
zB = 14 - 2y,

where z is marginal utility per dollar spent, x is the amount spent on product A, and y is the amount spent on product B.

Assume that the consumer has $9 to spend on A and B-that is: x + y = $9.

Instructions: Enter your answers as whole numbers.

a. How is the $9 best allocated between A and B?

$ on A.
$ on B.

b. How much utility will the marginal dollar yield?

Reference no: EM13334542

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