Question:

Suzy knows she has maximized her utility, because she is on her budget constraint and?

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a. consumption of good X equals consumption of good Y

b. what is spent on good X equals what is spent on good Y

c. MUx/Px = MUy/Py

d. MUx = MUy

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  1. suppose Ivy buys only two things, books and coffee, and receives the same satisfaction from the last book bought as she did from the last coffee bought. Books cost twice as much as coffee, and  she has spent all her money. If she is trying to maxamize her utility? what should she do?

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