Table 56 Shows Nelson's Total Utility for Goods a and

question 72

Essay

Table 5.6 shows Nelson's total utility for Goods A and
B.
Table 5.6

Suppose the prices for both Good A and B are $1 each.
a)If Nelson's budget is $3,what will his consumption bundle?
b)If Nelson's budget is $4,what will his consumption bundle?
c)If Nelson's budget is $6,what will his consumption bundle?
d)If Nelson's budget is $10,what will his consumption bundle?
a)1 unit of Good A and 2 units of Good
B.
b)2 units of Good A and 2 units of Good
B.
c)3 units of Good A and 3 units of Good
B.
d)3 units of Good A and 4 units of Good
B.(You would not purchase more of either since the MUs of additional units are negative).

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Definitions:

Great Britain

An island in the North Atlantic Ocean off the northwest coast of continental Europe, comprising England, Scotland, and Wales, and making up the major part of the United Kingdom.

Russia

The largest country in the world by area, spanning Eastern Europe and northern Asia, known for its rich cultural heritage, history of tsarist and Soviet rule, and current significance in global affairs.

1848 Revolution

A series of interconnected revolutionary movements that took place across Europe, demanding nationalist and liberal reforms.

Enlightenment

An intellectual and philosophical movement that dominated the world of ideas in Europe during the 17th and 18th centuries, emphasizing reason, individualism, and skepticism of traditional doctrines.