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Pls put some efforts to do it, I will defintely upvoted for correct answer! Identify whether Claudia's expenditure on each product should rise or fall
Pls put some efforts to do it, I will defintely upvoted for correct answer!
Identify whether Claudia's expenditure on each product should rise or fall in order to maximize utility. Assume that Claudia's consumption choices are using up her entire budget. Marginal Utility of X Marginal Utility of Y (units of utility) Price of X ($) (units of utility) Price of Y ($) 4 12 2 4 To maximize utility, Claudia should O A. buy more of each good. O B. buy less of each good. O C. buy less of good X and more of good Y. O D. buy more of good X and less of good Y. O E. not change her expenditures.Toffee (bars) Cashews (bags) Marginal Total Marginal Total Units Utility Utility Utility Utility 10 10 12 12 18 10 22 23 29 26 34 NouhwN- 27 O - NUN 36 27 37 27 37 If the prices of toffee bars and bags of cashews are both $2 and this consumer has $6 per week to spend on these two snacks, how many of each will he/she purchase to maximize utility? O A. 2 toffee bars and 7 bags of cashews O B. 6 toffee bars and 5 bags of cashews O C. 5 toffee bars and 6 bags of cashews O D. 7 toffee bars and 4 bags of cashews O E. 1 toffee bar and 2 bags of cashewsStep by Step Solution
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