If a Consumer Purchases a Combination of Commodities a and B

question 152

Multiple Choice

If a consumer purchases a combination of commodities a and b such that MU_a/P_a = 50 and MU_b/P_b = 30, to maximize utility, the consumer should buy:

• A) less of both a and b.
• B) more of both a and b.
• C) more of a and less of b.
• D) less of a and more of b.

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Definitions:

Parking Lot

An area designated for the parking of vehicles.

Car Accident

An unexpected and unintended event involving a vehicle on a road or public area, often leading to damage or injury.

Painting

The practice of creating artwork by applying pigment to a surface, such as canvas, paper, or a wall, using tools like brushes.

Modifying

The process of making changes or alterations to an existing system, structure, or process to improve performance or efficiency.