Exhibit 6-10

-Exhibit 6-10 indicates the marginal utilities that Sharrona receives from consuming different amounts of goods A and B. If the price of A is $2 per unit and the price of B is $4 per unit, what combination of A and B would maximize Sharrona's total utility if her budget is $12?
A) 0 units of A; 3 units of B
B) 4 units of A; 1 unit of B
C) 4 units of each
D) 1 unit of A; 4 units of B
E) 2 units of each
Correct Answer:
Verified
Q81: The law of diminishing marginal utility explains
Q82: If MUx/Px > MUy/Py, the consumer can
Q84: If the price of a good falls,
Q90: Suppose a glass of orange juice has
Q91: Suppose you have spent your entire budget
Q94: If Arnold thinks his last dollar spent
Q94: Sally is allocating her budget between two
Q95: Basil is maximizing his utility from consuming
Q96: When residential water users are charged a
Q100: To derive a demand curve using utility
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents