Answer to Question #17027 in Microeconomics for asia

Question #17027
2-Mohamed purchases two products, mineral water and popcorn. The marginal utility of mineral water is 60 and the marginal utility of popcorn is 30. The price of a bottle of mineral water is $2.00 and the price of a box of popcorn is $1.00. The utility-maximizing rule suggests that Mohamed should: a-increase consumption of popcorn and decrease consumption of mineral water. b-increase consumption of popcorn and increase consumption of mineral water. c-decrease consumption of popcorn and increase consumption of mineral water. d-make no change in the consumption of mineral water or popcorn.
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Expert's answer
2012-10-24T10:38:33-0400

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