At a consumer optimum involving goods A and B, the marginal utility of good A is 6
utils, and the marginal utility of good B is 18
utils.
The price of good B is enter your response here
times the price of good A.
The price of good B is 3 times the price of good A.
To find the price of good B relative to the price of good A, we need to compare their marginal utilities and determine the ratio.
Given that the marginal utility of good A is 6 utils and the marginal utility of good B is 18 utils, we can set up the following equation:
MUa / MUb = Price of B / Price of A
Substituting the given marginal utility values, we have:
6 / 18 = Price of B / Price of A
To simplify the equation, we can reduce the fraction:
1 / 3 = Price of B / Price of A
So, the price of good B is equal to one-third (1/3) of the price of good A.
To find the price of good B in comparison to good A, we need to determine the ratio between the marginal utilities of the two goods.
Given that the marginal utility of good A is 6 utils and the marginal utility of good B is 18 utils, we can say that the marginal utility of good B is three times that of good A.
Since the price of good B is a certain multiple of the price of good A, we can conclude that the price of good B is three times the price of good A.