The marginal utility of good A is 4 utils, and its price is $ 2. The marginal utility of good B is 6 utils, and its price is $1. Is the individual consumer maximizing (total) utility if she spends a total of $3 by buying one unit of each good? If not, how can more utility be obtained? Explain using the Equimarginal principle.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
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The marginal utility of good A is 4 utils, and its price is $
2. The marginal utility of good B is 6 utils, and its price
is $1. Is the individual consumer maximizing (total)
utility if she spends a total of $3 by buying one unit of
each good? If not, how can more utility be obtained?
Explain using the Equimarginal principle.
Transcribed Image Text:The marginal utility of good A is 4 utils, and its price is $ 2. The marginal utility of good B is 6 utils, and its price is $1. Is the individual consumer maximizing (total) utility if she spends a total of $3 by buying one unit of each good? If not, how can more utility be obtained? Explain using the Equimarginal principle.
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