Phillip Is Deciding Between Consuming Good X and Good Y

question 112

Multiple Choice

Phillip is deciding between consuming Good X and Good Y. At his current level of consumption, his marginal utility per dollar for Good X is less than the marginal utility per dollar for Good Y. To achieve the consumer optimum, Phillip needs to:

• A) consume more of Good Y until the marginal utility per dollar for Good X is greater than the marginal utility for Good Y.
• B) consume less of Good X or more of Good Y until the marginal utility per dollar for Good X and Good Y is equal.
• C) consume more of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• D) consume less of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• E) continue at his current level of consumption.

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Definitions:

Open-ended Question

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A type of question that is structured to receive a specific, often one-word, response like 'yes' or 'no'.

Hypothetical Question

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