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Business, 22.11.2019 06:31 lakhwinder6588

9. melika spends all of her income on magazines and carry-out lunches. the price of a magazine is $5, and the price of a carry-out lunch is $7. at the current consumption bundle, the marginal utility of magazines is 10, and the marginal utility of carry-out lunches is 21. assuming that diminishing marginal utility applies to both goods, to maximize utility given her income, melika should: a. increase her consumption of magazines and decrease her consumption of carry-out lunches.
b. consume equal amounts of magazines and carry-out lunches.
c. increase her consumption of carry-out lunches and decrease her consumption of magazines.
d. continue to consume the current bundle.

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9. melika spends all of her income on magazines and carry-out lunches. the price of a magazine is $5...
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