Given a Set Amount of Money, Goods a and B

question 75

Multiple Choice

Given a set amount of money, goods A and B both give the same marginal utility at current levels of consumption but good A costs twice as much as good B. You should:

• A) consume more of good A and less of good B.
• B) consume more of good B and less of good A.
• C) keep consuming the current amounts of both good A and good B.
• D) realize that you don't have enough information to answer the question.

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Definitions:

DC Circuit

A circuit that has a constant direction of flow of electric current, typically using direct current (DC) as its power source.

Directly Proportional

A relationship between two variables where if one increases, the other one also increases at a constant ratio.

Inversely Proportional

A relationship between two variables where when one variable increases, the other decreases at a rate that maintains the constant product of the two variables.

Power Source

A component or system that provides electrical power to a circuit or device.