Let us consider the case of Sabbir who has the option of consuming two products, peaches and oranges. In the initial situation, Sabbir consumes a specific quantity of peaches and a specific quantity of oranges. As a result, the value of marginal utility per pound spent on peaches is less than the value of marginal utility per pound spent on oranges. Which of the following options should be adopted by Sabbir if he wants to increase his total utility from the consumption of peaches and oranges compared to the initial situation? a. He should increase his expenditure on peaches and he should decrease his expenditure on oranges compared to the initial situation b. He should decrease his expenditure on peaches and he should increase his expenditure on oranges compared to the initial situation c. He should increase his expenditure on both peaches and oranges compared to the initial situation d. He should decrease his expenditure on both peaches and oranges compared to the initial situation
Let us consider the case of Sabbir who has the option of consuming two products, peaches and oranges. In the initial situation, Sabbir consumes a specific quantity of peaches and a specific quantity of oranges. As a result, the value of
a. He should increase his expenditure on peaches and he should decrease his expenditure on oranges compared to the initial situation
b. He should decrease his expenditure on peaches and he should increase his expenditure on oranges compared to the initial situation
c. He should increase his expenditure on both peaches and oranges compared to the initial situation
d. He should decrease his expenditure on both peaches and oranges compared to the initial situation
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
