Instructions Question 10 2 pt Assume that an individual consumes only coffe and

Question

Instructions Question 10 2 pt Assume that an individual consumes only coffe and bagels and that the last cup of cofeeyields 12 utils and the last bagel 6 utils.If the price of a cup of coffee is $1 and the price of the bagel is $.50, we can conclude that the: O consumer should consume more coffee and fewer bagels O price of coffee is too high relative to bagels. O consumer should consume less coffee and more bagels. O consumer is in equilibrium Next Previous Submit No new data to save. Last checked at 4:41pm

Explanation / Answer

Answer is Consumer is in equilibrium. Explanation: MU of coffee: 12 MU of Bagels: 6 Price of coffee: 1 Price of Bagels: 0.50 For consumer to be in equilibrium, MU of coffee/ Price of Coffee   = MU of bagels/ Price of Bagels 12/1 = 6 /0.50 Hence, it is equal and consumer is in equilibrium.

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