rakesh buys coke and pizza. the marginal utility of last unit of coke is 100 utils and of last piece of pizza is 40 utils. the price of coke is rs.20 and thag of pizza is rs.100 this implies rakesh is right now buying how much of each and why
Dear student,
A consumer attains equilibrium at the point where,
This is because the MU of rupee spent on pizza is much less than the MU of rupee spent on coke. And as we already know the MU follows the law of diminishing marginal utility, therefore, from here we can say that the consumer must be consuming more of pizza due to which the MU of rupee spent on pizza has come to this low.
A consumer attains equilibrium at the point where,
This is because the MU of rupee spent on pizza is much less than the MU of rupee spent on coke. And as we already know the MU follows the law of diminishing marginal utility, therefore, from here we can say that the consumer must be consuming more of pizza due to which the MU of rupee spent on pizza has come to this low.
