If a Consumer Purchases a Combination of Commodities X and Y

question 97

Multiple Choice

If a consumer purchases a combination of commodities x and y such that MU_x/P_x = 20 and MU_y/P_y = 5, to maximize utility, the consumers should buy.

• A) more of x and less of y.
• B) less of x and less of y.
• C) more of both x and y.
• D) less of both x and y.

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Definitions:

Prototypes

Early samples, models, or releases of a product built to test a concept or process or to act as a thing to be replicated or learned from.

Process Innovations

Involve new or improved ways of manufacturing the product or providing the service.

Product Innovations

Involve the use of new or improved design principles or technologies for incorporation in products or services.

Creativity

Creativity involves the generation of new and original ideas, approaches, or solutions through imaginative thinking and problem-solving skills.