Monica's current income went up from $100.000 to $105,000 and she increased her current

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Columns 1 through 4 of the accompanying table 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 $105.   What quantities of A, B, C, and D will Ricardo purchase in maximizing his utility?           How many dollars will Ricardo choose to save?           Check your answers by substituting them into the algebraic statement of the utility‑maximizing rule. In other words, show it works when using this rule.

Exercise 2 Suppose you have the following hypothetical demand or sales function. Qx= -4Px+2Py+0.201+0.04A and PX = $200, (price of good X) PY =$230, (price of good Y) 1 = $1,500 (disposable per capita income) A=$12,000 (advertizing expenditures) a. Write out a reduced demand function b. Solve for and write out the demand curve equation c. Give a narrative interpretation for the coefficient of I d. How could we classify good X and good Y? Explain why.

Suppose the budget line changes so that the consumer achieves a new equi librium at point B. What change in the economic environment led to this new equilibrium? Is the consumer better off or worse off as a result of the price change?

Matt has $14 in income that he devotes entirely towards caffeine purchases, specifically coffee and tea. Tea costs $4/cup and coffee costs $5/cup. Also, tea is subject to a quantity tax of $1/cup, and coffee is subject to a value tax of 0%. By how much will the slope of Matt's budget constraint change if his income were to increase from $14 to $37?

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