Bridget has a limited income and consumes only wine and, Ask an Expert

Economics

Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. The last bottle of wine added 50 units to Bridget's utility, while the last pound of cheese added 40 units.

a) Is Bridget making the utility-maximizing choice? Why or why not?

b) If not, what should she do instead? Why?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91399785

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