Business
Business, 06.06.2020 20:00, BEEFYTACO

Each glass of milk costs PM = $1, and each glass of juice costs Pj = $2. Suppose that Beth buys 75 glasses of milk and 50 glasses of juice per month. The following graphs show her marginal utility curves for milk and juice. At her current consumption level, Beth's marginal utility from consuming the last glass of milk she bought is MUM = 12 utils per glass, and her marginal utility from consuming the last glass of juice she bought is MU = 12 utils per glass. ? 24 24 20 20 16 16 12 12 8 0 100 0 25 50 75 125 150 0 25 50 75 100 125 150 MILK (Glasses per month) JUICE (Glasses per month) MU OF MILK (Utils per glass) S MU OF JUICE (Utils per glass) Is Beth currently maximizing her utility? No; she likes juice and milk more than other goods, so she should buy more of both. No; she could buy less juice and more milk, not spend any more money, and be better off. No; she could buy more juice and less milk, not spend any more money, and be better off. Yes; the marginal utility she receives from her last glass of milk equals that of her last glass of juice. For each of the following combinations of milk and juice, calculate the marginal utility per dollar from the last glass of milk and the last glass ofjuice. Then, use the dropdown menus in the last column to indicate which of the combinations satisfy the condition for consumer equilibrium. Milk Juice MUM MU, PL (Glasses per Month) (Glasses per Month) Combination Consumer Equilibrium? PM 100 100 A 75 50 125 100 C D 25 25 Suppose Beth has a "beverage budget" of $395 per month, which she spends on milk and juice. To maximize her utility, Beth will purchase glasses of juice per month glasses of milk.

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Each glass of milk costs PM = $1, and each glass of juice costs Pj = $2. Suppose that Beth buys 75 g...

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