contestada

Suppose you have a limited money income and you are purchasing products a and b whose prices happen to be the same. To maximize your utility you should purchase a and b in such amounts that: their marginal utilities are the same. Their total utilities are the same. Their marginal and total utilities are proportionate. The income and substitution effects associated with each are equal.

Respuesta :

pristina

Answer: Their marginal utilities are the same.

Explanation:

Consumer optimum occurs at a point where the slope of the indifference curve is equal to the slope of the budget line. This is given by,

[tex]\frac{MU_{A} }{MU_{B} } = \frac{P_{A} }{P_{B} }[/tex]

Since, price of a and b are equal.

[tex]\frac{MU_{A} }{MU_{B} } = 1[/tex]

[tex]MU_{A} = MU_{B}[/tex]

Thus, the two marginal utilities must be equal at the consumer optimum.

Otras preguntas