Question

Eleanor enjoys consuming both guacamole and salsa. Each jar of guacamole costs PG=$1${\mathit{P}}_{\mathit{G}}=\mathrm{\$1}$, and each jar of salsa costs PS=$2${\mathit{P}}_{\mathit{S}}=\mathrm{\$2}$. Suppose that Eleanor buys 300 jars of guacamole and 200 jars of salsa per year. The following graphs show her marginal utility curves for guacamole and salsa. At her current consumption level, Eleanor's marginal utility from consuming the last jar of guacamole she bought is MUG=30${\mathit{MU}}_{\mathit{G}}=30$ utils per jar, and her marginal utility from consuming the last jar of salsa she bought is MUS=30${\mathit{MU}}_{\mathit{S}}=30$ utils per jar.

Is Eleanor currently maximizing her utility?

No; she could buy less salsa and more guacamole, not spend any more money, and be better off.

No; she likes salsa and guacamole more than other goods, so she should buy more of both.

Yes; the marginal utility she receives from her last jar of guacamole equals that of her last jar of salsa.

No; she could buy more salsa and less guacamole, not spend any more money, and be better off.

For each of the following combinations of guacamole and salsa, calculate the marginal utility per dollar from the last jar of guacamole and the last jar of salsa. Then, use the dropdown menus in the last column to indicate which of the combinations satisfy the condition for consumer equilibrium.

Suppose Eleanor has a "snack budget" of $1,300 per year, which she spends on guacamole and salsa. To maximize her utility, Eleanor will purchase

jars of guacamole and

jars of salsa per year.