Alex has allocated his income in such a way that the marginal utility of the last unit of product X he consumes is 40 utils and that of the last unit of Y is 16 utils. If the unit price of X is $5, then the price of Y must beA. $1 per unit. B. $2 per unit. C. $3 per unit. D. $4 per unit.

B. $2 per unit

Explanation:

The computation of the price of Y is shown below:

As we know that the condition of the  utility maximization i.e ratio of Marginal utility and the price should be matched and equal for both the goods given in the question

For one good

= Marginal utility ÷ price

=  40 ÷ $5

= 8

And, for the other goods

Marginal utility ÷ price = 8

16 ÷ Price = 8

So, the price is $2 per unit

Hence, the correct option is B.

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )

are you looking for a specific answer?