Consumer optimum requires that consumers make purchases so for that the last dollar spent on all​ goods, the ratio of marginal utility to the price of the good is

Question

equal
.
Part 2
We know the marginal utility of good A is three
times the marginal utility of good​ B, and the price of A is ​$4.50
.
Since we know the price of good A is three times the price of good B. In this case the price of good B would be ​$ 6.75.
I don't understand how to get ​$6.75?

the price of good B can be determined by relying on the consumer utility mazimizing rule ​( MU A / P A) =(MUB/ PB) --> (8/4.50) =(12.00/PB).
Do you know where the 8 on (8/4.50) come from? and the 12.00 on (12.00/PB) come from?

Answer 1

In the given information, it is mentioned that the marginal utility of good A is three times the marginal utility of good B. This means that the ratio of the marginal utilities can be expressed as MU(A)/MU(B) = 3/1.

In the utility maximizing rule (MU(A)/P(A)) = (MUB/PB), we can substitute the given values to find the price of good B.

We are given that the price of good A is $4.50. Plugging in these values, we have:

(3/1)/(4.50) = (MUB/PB)

Simplifying the left side of the equation, we get:

(3/4.50) = (MUB/PB)

To find the price of good B, we can cross-multiply and solve for PB:

3 x PB = 4.50 x 1

3 x PB = 4.50

Dividing both sides by 3 gives us:

PB = 4.50/3 = $1.50

Therefore, the price of good B would be $1.50.

I'm not sure where the numbers 8 and 12.00 are coming from in the question you provided. It seems there might be a mistake or misunderstanding in the given information.