Business, 01.11.2019 06:31 Damagingawsomeness2

Musashi lives in philadelphia and loves to eat desserts. he spends his entire weekly allowance on pudding and pie. a bowl of pudding is priced at $1.00, and a piece of pumpkin pie is priced at $4.00. at his current consumption point, musashi's marginal rate of substitution (mrs) of pudding for pie is 3. this means that musashi is willing to trade three bowls of pudding per week for one piece of pie per week. does larry's current bundle maximize his utility—in other words, make him as well off as possible? if not, how should he change it to maximize his utility?

larry could increase his utility by buying more pudding and less pie per week.

larry's current bundle maximizes his utility, and he should keep it unchanged.

larry could increase his utility by buying less pudding and more pie per week.

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Musashi lives in philadelphia and loves to eat desserts. he spends his entire weekly allowance on pu...

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