Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 1

ColumnS₁ through 4 in the table below show the marginal utility, measured in utils, that Ricardo would get by purchasing various amounts of products A, B, C, and D. Column 5 shows the marginal utility Ricardo gets from saving. Assume that the prices of A, B, C, and D are $18, $6, $4, and $24, respectively, and that Ricardo has an income of $106.
a. What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility
b. How many dollars will Ricardo choose to save
c. Check your answers by substituting them into the algebraic statement of the utility-maximizing rule.