Would you suggest that consumer buy jeans and fewer t-shirts


Problem

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?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

Solution Preview :

Prepared by a verified Expert
Microeconomics: Would you suggest that consumer buy jeans and fewer t-shirts
Reference No:- TGS02086434

Now Priced at $15 (50% Discount)

Recommended (92%)

Rated (4.4/5)