Question
Hello! Can you help me solve this? Suppose that Fiona spends all of her income on 10 units of good X and 14 units of
Hello!
Can you help me solve this?
Suppose that Fiona spends all of her income on 10 units of good X and 14 units of good Y. Fiona's marginal utility from the 10thunit of good X is 24 utils, and her marginal utility from the 14thunit of good Y is 20 utils. If the price of good X is $8 per unit and the price of good Y is $5 per unit, then Fiona should:
A) continue to purchase 10 units of good X and 14 units of good Y.
B) purchase more than 10 units of good X and less than 14 units of Y.
C) purchase more than 10 units of good X and more than 14 units of good Y.
D) purchase less than 10 units of good X and more than 14 units of good Y.
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