Units of Product Marginal Utility, A (Price = $1) Marginal Utility, B (Price = $1) First Second Third Fourth Fifth Sixth Seventh 16 utils. 54 utils. Ⓒ70 utils. 12 20 utils. 10 8 6 4 2 0 16 14 12 10 8 4 Refer to the data for a consumer whose income $4. In equilibrium, the introduction of new product C has increased this consumer's total utility by Marginal Utility, New Product, C (Price = $1) 20 18 16 14 12 10 8

Units of Product Marginal Utility, A (Price = $1) Marginal Utility, B (Price = $1) First Second Third Fourth Fifth Sixth Seventh 16 utils. 54 utils. Ⓒ70 utils. 12 20 utils. 10 8 6 4 2 0 16 14 12 10 8 4 Refer to the data for a consumer whose income $4. In equilibrium, the introduction of new product C has increased this consumer's total utility by Marginal Utility, New Product, C (Price = $1) 20 18 16 14 12 10 8

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Ursula's utility function is In(x) + 6y, her income is 12, and both prices are 1. (a) What is her demand for x? (b) What is her own-price elasticity for x? (c) What is her income elasticity for x?
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