ADVANCED ANALYSIS Let MUA =z = 10 − x and MUB = z = 21 −2y, wherez is ultimate usefulness per dollar measured in utils,x is the whole late on fruit A, and y is the whole late on fruit B. Assume that the consumer has $10 to lay-out on A and B—that is,x + y = 10. How is the $10 best allocated between A and B? How abundantly usefulness gain the ultimate dollar accede?
ADVANCED ANALYSIS Assume the aftercited prizes for Figures 5.4a and 5.4b. Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The chaffer equilibrium appraisement is $45 per bag. The appraisement at a is $85 per bag. The appraisement at c is $5 per bag. The appraisement at f is $59 per bag. The appraisement at g is $31 per bag. Apply the formula for the area of a triangle (Area = ½ x Base x Height) to reply the aftercited questions. LO2
a. What is the dollar prize of the aggregate residue (origin residue plus consumer residue) when the allocatively prolific output plane is life executed? How extensive is the dollar prize of the consumer residue at that output plane?
b. What is the dollar prize of the deadweight damage when output plane Q2 is life executed? What is the aggregate residue when output plane Q2 is life executed?
c. What is the dollar prize of the deadweight damage when output plane Q3 is executed? What is the dollar prize of the aggregate residue when output plane Q3 is executed?
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