Answer to Question #81501 in Economics of Enterprise for charles colson

Question

A bottle of wine costs $8 and a quiche costs $5. Lily is planning to spend all of her income, choosing a consumption bundle whereby she would receive marginal utility worth $10 from the last bottle of wine and marginal utility worth $4 from the last quiche. In order to get more utility out of her given resources, Lily could

Answer 1

Lily is planning to spend all of her income, choosing a consumption bundle whereby she would receive marginal utility worth $10 from the last bottle of wine and marginal utility worth $4 from the last quiche. In order to get more utility out of her given resources, Lily could consume less wine and more quiche.