If a Consumer Purchases a Combination of Commodities X and Y

question 29

Multiple Choice

If a consumer purchases a combination of commodities x and y such that MU_x/P_x = 20 and MU_y/P_y = 10, to maximize utility, the consumers should buy.

• A) less of x and more of y.
• B) more of x and less of y.
• C) more of both x and y.
• D) less of both x and y.

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Definitions:

Weaknesses

Refers to the areas or aspects where an individual or entity may lack strength or proficiency.

Grapevine

An informal and unofficial communication channel within an organization, through which information, rumors, and gossip are typically spread.

Trust

A strong conviction in someone or something's reliability, truthfulness, capability, or robustness.