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Economics 11th Edition by William McEachern
Edition 11ISBN: 978-1305505469Economics 11th Edition by William McEachern
Edition 11ISBN: 978-1305505469 Exercise 6
THE LAW OF DEMAND AND MARGINAL UTILITY Daniel allocates his budget of $24 per week among three goods. Use the following table of marginal utilities for good A , good B , and good C to answer the questions:
a. If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Daniel purchase in equilibrium?
b. If the price of A rises to $4 while other prices and Daniel's budget remain unchanged, how much of each does he purchase in equilibrium?
c. Using the information from parts (a) and (b), draw the demand curve for good A. Be sure to indicate the price and quantity demanded for each point on the curve.
a. If the price of A is $2, the price of B is $3, and the price of C is $1, how much of each does Daniel purchase in equilibrium?
b. If the price of A rises to $4 while other prices and Daniel's budget remain unchanged, how much of each does he purchase in equilibrium?
c. Using the information from parts (a) and (b), draw the demand curve for good A. Be sure to indicate the price and quantity demanded for each point on the curve.
Explanation
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Utility Maximization Condition: Cardinal...
Economics 11th Edition by William McEachern
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