A consumer is currently purchasing three pairs of jeans and


A consumer is currently purchasing three pairs of jeans and five T-shirts per year. The price of jeans is $30, and T-shirts cost $10. At the current rate of consumption, the marginal utility of jeans is 60, and the marginal utility of T-shirts is 30. Is this consumer maximizing his utility? Would you suggest that he buy more jeans and fewer T-shirts, or more T-shirts and fewer jeans?

Solution Preview :

Prepared by a verified Expert
Microeconomics: A consumer is currently purchasing three pairs of jeans and
Reference No:- TGS0655098

Now Priced at $10 (50% Discount)

Recommended (96%)

Rated (4.8/5)