To determine the combination of pizza and tacos that will maximize a student's utility, an economist must know:

Question

Quizplus · Accepted Answer

To determine the combination of pizza and tacos that will maximize a student's utility, an economist must know the marginal rate of substitution between pizza and tacos and the price ratio. The marginal rate of substitution tells us how willing the student is to trade one good for the other, while the price ratio tells us how the two goods are priced relative to each other. With this information, the economist can determine the optimal combination that will maximize the student's utility, subject to budget constraints.

To Determine the Combination of Pizza and Tacos That Will