Suppose Paul Has Chosen a Combination of Two Goods, a and B

question 113

Multiple Choice

Suppose Paul has chosen a combination of two goods, A and B, such that the marginal utility per dollar spent for good A (MU_A/P_A) is .6 and the marginal utility per dollar spent for good B (MU_B/P_B) is 1. To increase utility with the same amount of money, Paul should:

• A) increase the number of B consumed and decrease the number of A consumed.
• B) increase the number of A consumed and decrease the number of B consumed.
• C) increase the number of both A and B consumed.
• D) do nothing; he cannot increase total utility.

---

Definitions:

Health Club

A facility with exercise equipment and often offering health and wellness services, classes, and programs aimed at improving physical fitness.

Family Support

Assistance and encouragement provided by family members to one another, which can be emotional, financial, or physical.

Somatic Symptom Disorders

A category of mental disorders characterized by excessive thoughts, feelings, or behaviors related to physical symptoms, leading to significant distress or impairment.

Factitious Disorders

A mental disorder in which a person acts as if they have a physical or mental illness when they are not really sick, often done to gain attention or sympathy.