If a Consumer Purchases a Combination of Commodities a and B

question 152

Multiple Choice

If a consumer purchases a combination of commodities a and b such that MU_a/P_a = 50 and MU_b/P_b = 30, to maximize utility, the consumer should buy:

• A) less of both a and b.
• B) more of both a and b.
• C) more of a and less of b.
• D) less of a and more of b.

---

Definitions:

Personal Computers

Computing devices designed for individual use, capable of performing a wide range of tasks including word processing, internet browsing, and gaming.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specific period.

Economy

An economy is an area of the production, distribution, and trade, as well as consumption of goods and services by different agents, structured within a community or geographical area.

Demand

The volume of a commodity or service that purchasers are prepared and can afford to buy across various price points within a designated timeframe.