Question
In: Economics
Rosaline consumes only turkey sandwiches and juice and she spends all her income on turkey sandwiches...
Rosaline consumes only turkey sandwiches and juice and she spends all her income on turkey sandwiches and juice. The marginal utility of her last turkey sandwich consumed is 200 utils and the marginal utility of her last juice consumed is 100 utils. The price of a turkey sandwich is $4 and the price of juice is $3 . 1. Is Rosaline maximizing her level of utility? Justify. 2. Should Rosaline consume less or more turkey sandwiches to reach equilibrium? Justify. 3. If Rosaline consumes more Turkey Sandwiches and less Juice, her Marginal Utility for consuming Turkey Sandwiches is 160 utils and her Marginal Utility for consuming Juice is 120 utils. Is this level of consumption maximizing the utility?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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(x1, x2) = 2√x1x2
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