Yufei spends his entire weekly income on economics books (E) and coffee (C). The price of an economics book (Pe) is $50 and the price of a cup of coffee (Pc)is $2. Yufei bought 10 economics books and 50 cups of coffee this week, he finds that MUE = 75 and MUC=3. We assume Yufei %3D has diminishing marginal utility from both books and coffee. What suggestion you should offer to Yufei to increase his utility giving his income?

Microeconomic Theory
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ISBN:9781337517942
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Chapter3: Preferences And Utility
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Question 13
Yufei spends his entire weekly income on economics books (E) and coffee (C). The price of an
economics book (PE) is $50 and the price of a cup of coffee (Pc)is $2. Yufei bought 10 economics
books and 50 cups of coffee this week, he finds that MUĘ = 75 and MUC = 3. We assume Yufei
%3D
%3D
has diminishing marginal utility from both books and coffee. What suggestion you should offer
to Yufei to increase his utility giving his income?
Buy more books and less coffee
O Buy both more books and coffee
I am not him and I have no idea
O Buy more coffee and less books
O Keep what he is doing
Transcribed Image Text:Question 13 Yufei spends his entire weekly income on economics books (E) and coffee (C). The price of an economics book (PE) is $50 and the price of a cup of coffee (Pc)is $2. Yufei bought 10 economics books and 50 cups of coffee this week, he finds that MUĘ = 75 and MUC = 3. We assume Yufei %3D %3D has diminishing marginal utility from both books and coffee. What suggestion you should offer to Yufei to increase his utility giving his income? Buy more books and less coffee O Buy both more books and coffee I am not him and I have no idea O Buy more coffee and less books O Keep what he is doing
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