Consider the following utility function for a representative consumer U (x1, x2) x1x2 Suppose that x1costs 1 TL a unit and x2costs 2 TL a unit This individual has 12 TL to spend on x1and x2 Assume a representative consumer buying 10 burgers per week, and his marginal utility of a burger is 15 The price of a burger is 5 TL He also consumes 10 sandwiches per week, and his marginal utility of a sandwich is 30 Is he maximizing utility at his current consumption basket If not, should he buy more sandwiches each week, or fewer

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Question: Consider the following utility function for a representative consumer: U (x1, x2) = x1x2.Suppose that x1costs 1 TL a unit and x2costs 2 TL a

Consider the following utility function for a representative consumer: U (x1, x2) = x1x2.Suppose that x1costs 1 TL a unit and x2costs 2 TL a unit. This individual has 12 TL to spend on x1and x2.

Assume a representative consumer buying 10 burgers per week, and his marginal utility of a burger is 15. The price of a burger is 5 TL. He also consumes 10 sandwiches per week, and his marginal utility of a sandwich is 30. Is he maximizing utility at his current consumption basket? If not, should he buy more sandwiches each week, or fewer?

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