Refer to the Following Table A)is Maximizing Satisfaction for the Given Expenditure

question 21

Multiple Choice

Refer to the following table. At this level of consumption of goods A and B, the consumer: $$\begin{array} { | l | c | c | } \hline & \text { Gand A } & \text { Gand B } \\\hline \text { Marpinal utility } & 100 & 500 \\\hline \text { Price } & \mathbf { \$ 2 0 } & \$ 50 \\\hline\end{array}$$

• A)is maximizing satisfaction for the given expenditure.
• B)could increase total satisfaction for a given expenditure by increasing the consumption of A and decreasing that of B.
• C)could increase total satisfaction for a given expenditure by increasing the consumption of B and decreasing that of A.
• D)should consume only A.

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