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Consumer Choice Optimization: Leonardo consumes only cookies and books. At his current consumption bundle, he is spending all his income and his marginal utility from
Consumer Choice Optimization: Leonardo consumes only cookies and books. At his current consumption bundle, he is spending all his income and his marginal utility from his last book is 10 utils and from his last cookie is 5 utils. Each book costs him $10 and each cookie costs $2. Is he maximizing his utility? Explain. Draw a graph of the consumer choice model for Leonardo showing his current utility level and explain whether and, if so, how he can improve his situation.
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