Person A currently consumes 10 hot dogs and 6 sodas each week. At his current consumption basket,
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Question:
Person A currently consumes 10 hot dogs and 6 sodas each week. At his current consumption basket, his marginal utility for hot dogs is 5 and his marginal utility for sodas is 3. If the price of one hot dog is 1 TL and the price of one soda is 0.50 TL, is this individual currently maximizing his utility? If not, how should he reallocate his spending in order to increase his utility?
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