Charles spends his income on milkshakes and boerewors rolls. At his current consumption levels, the marginal utility of one milkshake and the marginal utility of one boerewors roll are equal. From this, we can conclude that

Question

Answer

Charles is maximising his utility only if one milkshake and one boerewors roll have the same price.

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Charles should buy more milkshakes and fewer boerewors rolls if a milkshake costs more than a boerewors roll.

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Charles will maximise his utility by specialising in consumption and buying either milkshakes or boerewors rolls but not both.

Answer

Charles is maximising his utility.

Crowdly

Charles spends his income on milkshakes and boerewors rolls. At his current cons...

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