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Your friend budgets $20 per week for Burritos (b) and Colas (c). Your friend has the following Marginal utilities: Mub= 20 Muc = 2. Assume
Your friend budgets $20 per week for Burritos (b) and Colas (c). Your friend has the following Marginal utilities: Mub= 20 Muc = 2. Assume the prices are Pb = $5, and
Pc= 2. It follows:
A. Your friend has maximized their utility.
B. Your friend can afford 3 burritos, and 3 colas.
C. Your friend would be happier by buying more burritos, and fewer Colas.
D. Your friend would be happier buying more Colas, and fewer burritos.
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