Business, 03.03.2020 02:00 juliannabartra

Felix lives in Philadelphia and loves to eat desserts. He spends his entire weekly allowance on jello and pie. A bowl of jello is priced at $1.00, and a piece of pecan pie is priced at $3.00. At his current consumption point, Felix's marginal rate of substitution (MRS) of jello for pie is 5. This means that Felix is willing to trade five bowls of jello per week for one piece of pie per week.
1. Does Felix's current bundle maximize his utilityâ€”in other words, make him as well off as possible? If not, how should he change it to maximize his utility?

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Felix lives in Philadelphia and loves to eat desserts. He spends his entire weekly allowance on jell...

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