There are two consumers and two goods (A and B) in a competitive economy. At the competitive equilibrium, each consumer’s MRSAB of good A for good B is 3, which means each would be willing to trade 3 units of good B for one unit of good A. The price of good A is $15. What is the price of good B? Please round your answer to two decimal places, if necessary.

There are two consumers and two goods (A and B) in a competitive economy. At the competitive equilibrium, each consumer’s MRSAB of good A for good B is 3, which means each would be willing to trade 3 units of good B for one unit of good A. The price of good A is $15. What is the price of good B? Please round your answer to two decimal places, if necessary.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 23P: In Problem 22, if P(s1) = 0.25, P(s2) = 0.50, and P(s3) = 0.25, find a recommended decision for each...

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