Homework Help Forum: economics

Posted by maggie on Friday, October 23, 2009 at 2:36pm.

Bridget has 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

• economics - economyst, Friday, October 23, 2009 at 2:40pm

  While you havent actually asked the question, I already know the answer. Bridget should buy more cheese and less wine.

  
  

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