If MU a/ Pₐ = 100/$35 = MU b/ Pᵦ = 300/? = MU c/ P_c = 400/?, the prices of products B and C in consumer equilibrium

A) cannot be determined from the information given.
B) are $105 and $140, respectively.
C) are $105 and $175, respectively.
D) are $100 and $200, respectively.

Question

Zybrea Knight · Accepted Answer

Final Answer : B, Explanation :  The consumer equilibrium condition is given by the equation MUa/Pa = MUb/Pb = MUc/Pc. For product B, solving 300/? = 100/35 gives Pb = $105. For product C, solving 400/? = 100/35 gives Pc = $140.

If MU a/ Pₐ = 100/$35 = MU b/ Pᵦ = 300/? = MU c/ P_c = 400/?, the prices of products B and C in consumer equilibrium

A) cannot be determined from the information given.
B) are $105 and $140, respectively.
C) are $105 and $175, respectively.
D) are $100 and $200, respectively.

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Learning Objectives

Related questions

If MU a/ Pₐ = 100/$35 = MU b/ Pᵦ = 300/? = MU c/ Pc = 400/?, the prices of products B and C in consumer equilibriumA) cannot be determined from the information given.B) are $105 and $140, respectively.C) are $105 and $175, respectively.D) are $100 and $200, respectively.

Definitions

Learning Objectives

Learning Objectives

Related questions

If MU a/ Pₐ = 100/$35 = MU b/ Pᵦ = 300/? = MU c/ P_c = 400/?, the prices of products B and C in consumer equilibrium

A) cannot be determined from the information given.
B) are $105 and $140, respectively.
C) are $105 and $175, respectively.
D) are $100 and $200, respectively.