4. Li, a very careful maximizer of utility, consumes two services, going to the movies and bowling....
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4. Li, a very careful maximizer of utility, consumes two services, going to the movies and bowling. She has arranged her consumption of the two activities so that the marginal utility of going to a movie is 20 and the marginal utility of going bowling is 10. The price of going to a movie is $10, and the price of going bowling is $5. Show that she is satisfying the requirement for utility maximization. Now show what happens when the price of going bowling rises to $10.
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Related Book For
Principles Of Microeconomics
ISBN: 9781843317708
1st Edition
Authors: Libby Rittenberg, Timothy Tregarthen
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