Q1 Avery is currently using up the entire weekly budget she has allocated to purchasing Goods X and Y. The last unit of Good X provides her with 14 additional units ofutility, while the last unit of Good Y provides her with 12 additional units of utility. The price of Good X is $3.75 and each unit of Good Y cost $3.40.What recommendation would you make to Avery if she wanted to maximize her utility?Relative to the current combination of goods, she should ( Select )of Good X an V ( Select ]of Good Y.not change the quantitybuy more unitsbuy fewer unitsAvery is currently using up the entire weekly budget she has allocated to purchasing Goods X and Y. The last unit of Good X provides her with 14 additional units ofutility, while the last unit of Good Y provides her with 12 additional units of utility. The price of Good X is $3.75 and each unit of Good Y cost $3.40.What recommendation would you make to Avery if she wanted to maximize her utility?Relative to the current combination of goods, she shoul V ( Select ]of Good X and [ Select)of Good Y.not change the quantitybuy more unitsbuv fewer units

Given Marginal utility on last unit of good X that Avery buy by using weekly income = 14 and last…

Answered: Avery is currently using up the entire…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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