Question

Mr.X buys two goods: Pizza and chickenburgers. The price of a Pizza is Rs. 1, and the price of achickenburgers is Rs. 2. Each month, Mr. X spends all of her income and buys 30 Pizza and 5chickenburgers. Next month, the price of magnet will fall to Rs. 0.50 and the price of achickenburger 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 utilityof another chickenburger is 80. Is Mr. X maximize the utility? If not, how can he maximizehis utility?​

Answer 1

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