Answer
1. equamarginal rule
2. affordibility
Work Step by Step
Utility is maximized when the marginal utilities for each product are equal and when the total spent is equal to the budget.
Microeconomics: Principles, Applications, and Tools (8th Edition)
by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen
Published by
Prentice Hall
ISBN 10:
0-13294-886-9
ISBN 13:
978-0-13294-886-9
Chapter 7 - Consumer Choice: Utility Theory and Insights from Neuroscience - Exercises - 7.1 Traditional Consumer Choice: Utility Theory - Page 177: 1.8a
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