Elucidate would you suggest he buy more jeans and fewer, Ask an Expert

Economics

A consumer is currently purchasing 3 pairs of jeans and 5 t-shirts per year. The price of jeans is $30, and t-shirts cost $10. At his current rate of consumption, his marginal utility of jeans is 60 and his marginal utility of t-shirts is 30.

a. Is this consumer maximizing his utility? Clearly explain why/why not.

b. Elucidate would you suggest he buy more jeans and fewer t-shirts, or more t-shirts and fewer jeans?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9224849

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