The following table gives the price and total utility of three goods: A, B, and C.
\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|}
\hline Good & Price & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 \\
\hline A & [tex]$\$[/tex] 10[tex]$ & 200 & 380 & 530 & 630 & 680 & 700 & 630 & 430 \\
\hline B & 2 & 20 & 34 & 46 & 56 & 64 & 72 & 78 & 82 \\
\hline C & 6 & 50 & 60 & 70 & 80 & 90 & 100 & 90 & 80 \\
\hline
\end{tabular}

As closely as possible, determine how much of the three goods you would buy with $[/tex]\[tex]$ 20$[/tex].

- [tex]$\square$[/tex] 2 of good [tex]$A$[/tex]
- [tex]$\square$[/tex] of good B.
- [tex]$\square$[/tex] of good [tex]$C$[/tex].



Answer :

Given a budget of [tex]$20, let's determine how to allocate this budget among the three goods A, B, and C in order to maximize the total utility. ### Step-by-Step Solution 1. Determine Quantity of Good A: - The price of good A is $[/tex]10.
- Let’s decide to buy 2 units of good A.
- Cost of 2 units of good A: [tex]\( 2 \times 10 = \$20 \)[/tex].
- The total expenditure on good A is [tex]$20, consuming the entire budget. - This leaves us with a remaining budget of \( \$[/tex]20 - \[tex]$20 = \$[/tex]0 \), which means no money is left to spend on goods B or C.

2. Evaluate Good B:
- The price of good B is [tex]$2. - Since there is no remaining budget after buying good A, we can't purchase any units of good B. - Therefore, the quantity of good B is 0. 3. Evaluate Good C: - The price of good C is $[/tex]6.
- Again, with no remaining budget after the purchase of good A, we can't purchase any units of good C.
- Therefore, the quantity of good C is 0.

### Summary
- We should buy 2 units of good A.
- We cannot buy any units of good B or good C due to budget constraints.

Thus, the optimal purchase given the budget of $20 is:
- 2 of good A,
- 0 of good B,
- 0 of good C.

Therefore, the quantities of goods purchased are:
- [tex]\(\boxed{2}\)[/tex] of good A,
- [tex]\(\boxed{0}\)[/tex] of good B,
- [tex]\(\boxed{0}\)[/tex] of good C.