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you can only consume two goods, gasonline and iced lattes. your current consumption bundle each week is 1 0 gallons of gas and 5 iced
you can only consume two goods, gasonline and iced lattes. your current consumption bundle each week is gallons of gas and iced lattes. the marginal utility you get from the th gallon of gas is and the marginal utility you get from the th iced latte is if the price of a gallon is $ and the price of a latte is $ are you behaving optimally? no you should change your purchases to buy more gasoline and fewer lattes becuase the marginal utility per dollar spent on lattes is less than the marginal utility per dollar spent on gasonline no you should buy more gasonline and fewer lattes becuase lattes are cheaper. yes becuase you are buying more of the cheaper good
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