Suppose That a Consumer Purchases a Combination of X and Y

question 47

Multiple Choice

Suppose that a consumer purchases a combination of X and Y such that MU_X/P_X = 15 utils per dollar and MU_Y /P_Y = 10 utils per dollar. To maximize utility, the consumer should buy

• A)less of X and more of Y.
• B)more of X and less of Y.
• C)more of both X and Y.
• D)less of both X and Y.
• E)neither X nor Y.

Apply concepts of means and standard deviations to find probabilities in Normal distribution scenarios.

Recognize and calculate probabilities involving uniform distributions within given ranges.

Utilize statistical models appropriately in various contexts to estimate probabilities.

Apply statistical reasoning to evaluate and interpret probabilities related to specific real-world scenarios.

---

Definitions:

Taxes on Gasoline

Government-imposed charges on the sale of gasoline, typically used to fund transportation infrastructure and other public projects.

Tax Revenue

Government income generated from the imposition of taxes.

Own-price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its own price, often used to understand consumer sensitivity to price changes.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a particular price.