Business, 04.09.2021 01:10 whitakers87

Bill regularly buys lattes and reading magazines. He has budgeted a certain amount of his income to these two goods and is spending that entire amount on the goods. Lattes cost $5.00 per cup and magazines are $3.00 each. His marginal utility from his last latte was 320 utils and his marginal utility from the last magazine he read was 280 utils. a. Is Bill currently consuming in such a way as to maximizes his total utility given hisbudget? Why or why not?
b. If Bill is not in a position of consumer equilibrium, how should he change his consumption of lattes and magazines to bring about equilibrium?

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Bill regularly buys lattes and reading magazines. He has budgeted a certain amount of his income to...

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