Betsy is currently using up the entire weekly budget she has allocated to purchasing Goods X and Y. The last unit of Good X provides her with 9 additional units of utility, while the last unit of Good Y provides her with 8 additional units of utility. The price of Good X is $1.50 and each unit of Good Y cost $1.20. What recommendation would you make to Betsy if she wanted to maximize her utility.

Answer rating: 100% (QA)

1 Calculate Marginal Utility per Dollar for Each Good Marginal utility per dollar for Good X Margina... View the full answer