Microeconomics 20th Edition by Campbell McConnell, Stanley Brue,Sean Flynn

Exercise 2

Simpson buys loaves of bread and quarts of milk each week at prices of $1 and 80 cents, respectively. At present she is buying these products in amounts such that the marginal utilities from the last units purchased of the two products are 80 and 70 utils, respectively. Is she buying the utility-maximizing combination of bread and milk If not, how should she reallocate her expenditures between the two goods