Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 PER POUND.The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units.
Is bridget making the utility-maximizing choice? Why or why not?
If not, what should she do instead? Why?
2 answers
After you have done some math and some reasoning, please repost with your thoughts. We do not do your homework for you. However, after you have written what you think, we will be happy to give you suggestions/corrections and ideas for additions.
iF U-F(X.Y)
Am I on the right track.
i believe the answer is no, but I am not sure if the philosphy holds true.
50=(10,4) + 40= (10,4)
2000+1600
Am i going in the right direction?
Am I on the right track.
i believe the answer is no, but I am not sure if the philosphy holds true.
50=(10,4) + 40= (10,4)
2000+1600
Am i going in the right direction?
1 answer