Assume an individual is currently using all of his income


Assume an individual is currently using all of his income to consume two goods, X and Y. If the prices of X and Y are $3 and $8, respectively, and the marginal rate of substituion of X for Y is four, is this individual maximizing his net benefits from consumption? If not, what should he do to increase his total utility?

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Econometrics: Assume an individual is currently using all of his income
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