Answer to Question #153088 in Microeconomics for tahreem tanveer

Question

Mr. Z consumes hot drinks and blue trouser. At prices of Rs. 2 for a pair of hot drinks and Rs. 2 for
blue trouser, his marginal utility of consuming another unit of blue trouser is 4, and his marginal
utility of another pair of hot drinks is 2. (hint: picture hot drinks on the y-axis and blue trouser on
the x-axis):

Answer 1

If his marginal utility of consuming another unit of blue trouser is 4, and his marginal utility of another pair of hot drinks is 2, then he should consume more trousers and less hot drinks to maximize his total utility.