Respuesta :
The two possible ways are c. Buy more pencils, Buy less pads and d. Buy less pencils, Buy more pads.
There are two approaches to increase utility:
Purchase more pencils -To raise the marginal usefulness of the pencils, which is now lower than the marginal utility of the pads, purchase fewer pads.
Purchase fewer pads - Purchase more pencils for the same goal as before: to raise the pencils' marginal utility, which is now lower than the marginal utility of the pads.
When the marginal utilities of both pencils and pads are equal, the maximum utility is realized.
The student should adjust his approach and enhance the marginal utility of the pencils at the expense of decreasing the marginal utility of the pads because he is currently spending all of his money and gaining differing marginal utilities.
The learner will therefore need to purchase more pencils and fewer pads in order to maximize the utility.
To know more about marginal utility:
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Correct question:
An art student spends all of her income on pencils and drawing pads. The student currently buys 30 pencils at $1 each and 10 pads at $5 each. If the marginal utility of the 30th pencil is 100 utils and the marginal utility of the 10th pad is 400 utils, to maximize utility the student should change her purchases of pencils and pads in which of the following ways?
Pencils Pads
a. Not change Buy more
b. Buy more Buy more
c. Buy more Buy less
d. Buy less Buy more
e. Buy less Buy less
