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A student buys only two goods pizza and books. The price of pizza is $5 and the price of books is $10. At the student's present level of consumption, her marginal utility of pizza is 4 and her marginal utility of books is 2. Currently, the student is spending all her income. A. Is this student currently in consumer equilibrium (maximizing utility)? Explain using a graph. B. What would this student have to do in order to increase her utility? Use the diagram from part (a) to explain your answer.
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A student buys only two goods pizza and books. The price of pizza is $5 and the price of books is $1...
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