Suppose that the MU that Xavier gets from the 11th take out meal this month is 500 and the price of take out is $10 per meal. Also, suppose that the MU that Xavier gets from the 8th movie this month is 720 and the price of movies is $15. Assume that these are the only 2 goods that Xavier consumes. a) Based on this information, if Xavier has additional income to spend, what should be his next purchase-a movie or take-out? Explain. b) Is your answer the same if instead of $10 per meal, the price of take-out increases to $12 per meal? Explain. c) Can your answer to B explain a typical downward sloping demand curve? Explain.

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