24. Binita has a limited income and consumes only juice and pasta; her current consumptio hoice is four bottles of juice and 10 pounds of pasta. The price of juice is $10 per bottle, and the rice of pasta is $4 per pound. The last bottle of juice added 50 units to Binita's utility, while the ast pound of pasta added 40 units. Is Binita making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Binita's consumption bundle? Why or why not?

24. Binita has a limited income and consumes only juice and pasta; her current consumptio hoice is four bottles of juice and 10 pounds of pasta. The price of juice is $10 per bottle, and the rice of pasta is $4 per pound. The last bottle of juice added 50 units to Binita's utility, while the ast pound of pasta added 40 units. Is Binita making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Binita's consumption bundle? Why or why not?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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