Joan purchases coffee (C), bagels (B) and juice (J). At her current levels of consumption, her MU_C = 10, MU_B = 15, and MU_J = 20. The price of coffee is $2, the price of bagels is $3, and the price of juice is $4. Is the Joan maximizing her utility? If so, why? If not, what must she do to move her consumption toward equilibrium?

Question

Quizplus · Accepted Answer

The Answer of Joan purchases coffee (C), bagels (B) and juice (J). At her current levels of consumption, her MU_C = 10, MU_B = 15, and MU_J = 20. The price of coffee is $2, the price of bagels is $3, and the price of juice is $4. Is the Joan maximizing her utility? If so, why? If not, what must she do to move her consumption toward equilibrium?

Joan Purchases Coffee (C), Bagels (B) and Juice (J)