Details of this Paper

Bridget has a limited income and consumes only wine and cheese;>> Get This Solution

Description

solution


Question

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.;a. Is Bridget making the utility- maximizing choice? Why or why not? b. If not, what should she do instead? Why?

 

Paper#30582 | Written in 18-Jul-2015

Price : $22
SiteLock