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# Answer to Question #78257 in Microeconomics for Mifrah

Question #78257
A consumer buys bread (b) and milk (m) each week at price Rs. 10 and Rs. 8 respectively. Suppose that the consumer's current consumption of bread and milk is giving him MU (bread) = 80 and MU (milk) = 70 . Is the consumer buying the utility maximization combination of bread and milk? If not how should he reallocate his expenditures between the two goods to maximize utility? Draw diagram and explain
1
2018-06-17T07:39:08-0400
1) Combination of bread and milk isn`t the utility maximization of consumer buying, because when the combination is the utility maximization, then MUA / РА = MUB / Рв. In our case, 80/10 < 70/8.
2) A consumer need buy more milk and less bread, then marginal utility of milk will decrease and marginal utility of bread will increase.

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