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Bianca Purchases Coffee (C), Bagels (B) and Juice (J)

question 26

Essay

Bianca purchases coffee (C), bagels (B) and juice (J). At her current levels of consumption, her MUC = 10, MUB = 15, and MUJ = 20. The price of coffee is $2, the price of bagels is $3, and the price of juice is $4. Is Bianca maximizing her utility? If so, why? If not, what must she do to move her consumption toward equilibrium?


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