Essay
You have $5 to spend on any combination of goods A and B.The price of good A is $2 and the price of good B is $1.You have calculated the following utility values for yourself: (a)Fill in the empty columns of the table.
(b)You have purchased 2 units of good A and 1 unit of good B.Are you maximizing your utility? If so,explain why.If not,what combination of goods should you buy?
Correct Answer:

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(a)The completed table: \[\begin{array} ...View Answer
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