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Question 1

The table below shows total utility for two products. Suppose that the price for product A is $5 and the price for product B is $5.

Number of product ATotal Utility for ANumber of product BTotal Utility for B
0000
13501450
26502850
390031150
4110041300
5125051350
Given this data, complete the table below:



 Quantity of A Marginal Utility for A Marginal Utility for A per dollar  Quantity of B Marginal Utility for B Marginal Utility for B per dollar
0 - - 0 - -
1
1
2
2
3
3
4
4
5
5


Suppose that a person has $25.

How many units of product A should she buy to maximize her happiness given her budget constraint?

How many units of product B should she buy to maximize her happiness given her budget constraint?




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