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4. Mrs. Schultz is exhausting her money income by buying bottles of beer and bags of pretzels in such amounts at the marginal utility of
4. Mrs. Schultz is exhausting her money income by buying bottles of beer and bags of pretzels in such amounts at the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The price of beer is $0.60 per bottle and the price of pretzels is $0.40 per bag. It can be concluded that a. beer is an inferior good. b. Mrs. Schultz should spend more on pretzels and less on beer. C Mrs. Schultz should spend more on beer and less on pretzels. d. Mrs. Schultz is buying beer and pretzels in utility maximizing amounts. e. a and b
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