Given the following: zA = 20 - 3x zB = 18 - 2y, where z is marginal utility per dollar spent, x is the amount spent on product A, and y is the amount spent on product B. Assume that the consumer has $14 to spend on A and B—that is: x + y = $14.

Instructions: Enter your answers as whole numbers.

a. How is the $14 best allocated between A and B?

$ on A.

$ on B.

b. How much utility will the marginal dollar yield? utils.

a. x= $6, y= $8

b. z= $2

Step-by-step explanation:

at equilibrium, the marginal utility per dollar spent will be equal i.e

zA=zB

20-3x=18-2y

upon simplification, we arrive at

......equation 1

since the total amount to spend is $14, then

x+y=14

x=14-y..............equation 2

if we solve equation 1 and equation 2 simultaneously

Hence for y=8

x=14-y=14-8

x=6

Hence the amount spent on Product A is $6 and the amount spent on product B is $8

b. to determine the amount of utility the marginal dollar will yield, we substitute the values of y and x into the the given equation,

zA=20-3x=20-3(6)

zA=20-18=2

zB=18-2y=18-2(8)

zB=18-16=2

hence the amount spent on the marginal utility is $2

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step-by-step explanation:

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1. 3.4/4

2. 0.8/7

3. 0.5 x 3

4. 0.9 x 6

5. 10.8

6. 2.35

7. 0.567

8. 9.35

9. 0.02

10. 0.06

11. 0.16

12. 0.42

13. 0.63

14. 5.6

15. 8.1

16. 9.9

17. 0.28

18. 0.48

19. 0.27

20. 0.49

21. 0.45

22. 0.72

23. 0.9

24. 0.88

25. 0.75

26. 0.16

27. 0.328

28. 0.495

29. 0.72

30. 1.068