At Hillary's current level of consumption,MUₓ/Pₓ = 18 and MUᵧ/Pᵧ = 15.Hillary can increase her utility by increasing her consumption of good X and reducing her consumption of good Y.

Question

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The statement suggests that Hillary has not yet reached the point where marginal utility per dollar spent is equal for both goods (i.e. MUₓ/Pₓ = MUᵧ/Pᵧ). Therefore, increasing her consumption of X and reducing her consumption of Y would lead to an increase in her total utility.

At Hillary's Current Level of Consumption,MUₓ/Pₓ = 18 and MUᵧ/Pᵧ