contestada

Juan spends all of his income on baseball cards and candy. At his current consumption bundle, the marginal utility of baseball cards is 20 and the marginal utility of candy is 10. If the price of baseball cards is $10, and the price of candy is $2, Group of answer choices Juan should consume equal amounts of baseball cards and candy. Juan is maximizing his utility, and he should continue to consume the current bundle. Juan should increase his consumption of candy and decrease his consumption of baseball cards. Juan should increase his consumption of baseball cards and decrease his consumption of candy.

Respuesta :

Answer:

Juan should increase his consumption of candy and decrease his consumption of baseball cards.

Explanation:

Given that

The baseball cards marginal  utility is 20

And the candy marginal utility is 10.

Now If the baseball cards price is $10,

and the candy price is $2

So if we divide the marginal utility with the price so it will come 2 for baseball card and 5 for candy so the consumption of the candy should be increased while on the other hand the consumption of the baseball card should be decreased

Otras preguntas