Question

Yvette enjoys consuming both milk and juice. Each glass of milk costs PMS1, and each glass of juice costs P$2. Suppose that Yvette buys 300 glasses of milk and 200 glasses of juice per year. The following graphs show her marginal utility curves for milk and juice. At her current consumption level, Yvette's marginal utility from consuming the last glass of milk she bought is MUM = 30 utils per glass, and her marginal utility from consuming the last glass of juice she bought is MU 30 utils per glass. 2 10 t 10 100 200 300 400 500 600 0 100 200 300 400 500 600 JUICE (Glasses per year) MILK (Glasses per year)

Answer 1

no, she could less juice more milk

Combination	Milk		juice		Consumer Equilibrium?
		GPG		MUSPS
A	200	40	100	17.5	False
B	400	20	200	15	False
C	300	30	300	12.5	False
D	500	10	400	10	True

3. 500 of Milk, 400 of juice