Assume That an Individual Consumes Two Goods,X and Y Given the Above,if the Consumer Has $65 to Spend on Utility

question 90

Multiple Choice

Assume that an individual consumes two goods,X and Y.The total utility (assumed measurable) of each good is independent of the rate of consumption of other goods.The prices of X and Y are,respectively,$5 and $10. $\begin{array}{c}\begin{array}{l}\text { Units of the GOOd} \\1\\2 \\3 \\4 \\5 \\6 \\7\\8\end{array}\begin{array}{l}\text { Total Utility of } X\\50 \\95 \\135 \\170 \\200 \\225 \\245\\160\end{array}\begin{array}{l}\text { Total Utility of } y\\400 \\750 \\950 \\1100 \\1220 \\1320 \\1400 \\1450 \end{array}\end{array}$
Given the above,if the consumer has $65 to spend on X and Y,the utility-maximizing bundle is

• A)3X and 5Y.
• B)4X and 4Y.
• C)5X and 2Y.
• D)1X and 6Y.
• E)2X and 7Y.

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Definitions:

Taxed

The imposition of compulsory levies on individuals or entities by governments in order to finance government activities.

Common Form

A widespread or standard format or structure that is frequently used for certain documents or procedures.

Business Ownership

The legal possession or control of a business, entitling the owner to its assets, liabilities, and operational decisions.

Utility Patent

A form of intellectual property protection that covers new inventions or functional improvements to existing inventions.