Question

Mr.X buys two goods: Pizza and chickenburgers. The price of a Pizza is Rs. 1, and the price of a
chickenburgers is Rs. 2. Each month, Mr. X spends all of her income and buys 30 Pizza and 5
chickenburgers. Next month, the price of magnet will fall to Rs. 0.50 and the price of a
chickenburger will rise to Rs. 5.
a) Will Mr. Xable to buy 30 pizza and 5 chicken burgers next month?
b) Will Mr.X want to buy 30 pizza and 5 chicken burgers at new prices?
c) If at the new prices, Mr. X marginal utility of another pizza is 40, and the marginal utility
of another chickenburger is 80. Is Mr. X maximize the utility? If not, how can he maximize
his utility?​

Answer 1

Answer:

Answer. B. is correct

Will Mr. X want to buy 30 pizza and 5 chicken burgers at new prices ...

Answer 2

Explanation:

If at the new prices, Mr. X marginal utility of another pizza is 40, and the marginal utility

of another chickenburger is 80. Is Mr. X maximize the utility? If not, how can he maximize

his utility?