Exhibit 6-3 Marginal utility data for goods X and Y
Units of good X
Marginal utility ofgood X
Units of good Y
Marginal utility ofgood Y
1
20
1
14
2
16
2
12
3
12
3
10
4
8
4
8
5
4
5
6
As shown in Exhibit 6-3, assume that the price of both goods is $1 per total unit, and your budget is $8. If you consume 4 units of good X and 1 unit of good Y. To maximize utility, you should consume:
A. less of both X and Y.
B. more of X and less of Y.
C. less of X and more of Y.
D. more of both X and Y.
Answer: C
Economics
You might also like to view...
In the above table, if the firm sells 5 units of output, its total revenue is
A) $15. B) $30. C) $75. D) $90.
Economics
According to the classical theory, an inward shift in aggregate demand would reduce
A) real Gross Domestic Product (GDP) and the price level. B) the price level but have no effect on real Gross Domestic Product (GDP). C) real income but have no impact on the price Gross Domestic Product (GDP). D) the price level but increase real Gross Domestic Product (GDP).
Economics