For Questions Assume That an Individual Consumes Two Goods

question 57

Multiple Choice

For questions 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.

$\begin{array}{lcc}\text { Units of the Good } & \text { TotalUtility of } X & \text { Total Utility of } Y \\1 & 50 & 400 \\2 & 95 & 750 \\3 & 135 & 950 \\4 & 170 & 1100 \\5 & 200 & 1220 \\6 & 225 & 1320 \\7 & 245 & 1400 \\8 & 260 & 1450\end{array}$
-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:

Dependable Energy

Reliable and consistent sources of energy that meet the needs of consumers without significant interruption.

Pollution Prevention Act

U.S. legislation focused on reducing or eliminating pollution at its source prior to recycling, treatment, or disposal.

Cost-Effective Changes

Adjustments or improvements to processes, systems, or products that maximize benefits while minimizing costs.

Production

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