Alonzos marginal utility for DVDs D is MU Subscript Upper De

Alonzo?\'s marginal utility for DVDs? (D) is MU Subscript Upper DequalsX and his marginal utility for Xbox games? (X) is MU Subscript Upper XequalsD. Alonzo?\'s income is ?$240?, the price of a DVD is ?$40.00?, and the price of an Xbox game is ?$20.00. How many DVDs and Xbox games does Alonzo consume to maximize his? satisfaction? Alonzo consumes nothing DVDs and nothing Xbox games. ?(Enter your responses using integers.?) Suppose the price of DVDs decreases to ?$20.00. What is Alonzo?\'s new? satisfaction-maximizing bundle? Alonzo now consumes nothing DVDs and nothing Xbox games. ?(Enter your responses using integers.?)

Solution

alonzo consumes 3 dvd and 6 xbox to maximize its satisfaction

if price od dvd decrease to $20. then,

alonzo consumes 6 dvd and 6 xbox to maximize its satisfaction