Mr. Adams daily income is $20 per day. He spends all of the income on buying apples

Fantastic news! We've Found the answer you've been seeking!

Question:

Mr. Adam’s daily income is $20 per day. He spends all of the income on buying apples and oranges. The prices are: $ 2 per apple and $ 4 per orange.
a). Using the given scenario discuss the concept of maximizing utility in detail. How is the concept of maximizing utility related to the definition of microeconomics?
Let’s assume, Mr. Adam is consuming 4 apples and 3 oranges per day. The marginal utility from apples is 10 utils and marginal utility from oranges is 12 utils.
b). Is Mr. Adam maximizing utility? Explain briefly.
c). If Mr. Adam is not maximizing utility, then how can he maximize utility? Explain in detail.