iuppose that Isaiah has a weekly fixed budget and spends it all on haircuts and ice cream. At his current combination of consumption, the marginal utility of the last dollar spent on haircuts is greater than the marginal utility of the last ollar spent on ice cream. Has Isaiah maximized his utility? A с E Yes, because changing his current consumption combination will reduce his total utility B No, because he can increase his total utility by purchasing more haircuts and D fewer ice creams Yes, because he has purchased 2 goods in proportion so that he can get- the maximum utility from each Yes, because he purchased the maximum possible with a limited budget No, because he can increase his total utility by purchasing fewer haircuts and more ice creams
iuppose that Isaiah has a weekly fixed budget and spends it all on haircuts and ice cream. At his current combination of consumption, the marginal utility of the last dollar spent on haircuts is greater than the marginal utility of the last ollar spent on ice cream. Has Isaiah maximized his utility? A с E Yes, because changing his current consumption combination will reduce his total utility B No, because he can increase his total utility by purchasing more haircuts and D fewer ice creams Yes, because he has purchased 2 goods in proportion so that he can get- the maximum utility from each Yes, because he purchased the maximum possible with a limited budget No, because he can increase his total utility by purchasing fewer haircuts and more ice creams
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 9P
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