John Is Currently Spending All of His Income

question 217

Multiple Choice

John is currently spending all of his income. For the last unit of Good A consumed John gets 20 utils and for the last unit of Good B consumed he gets 10 utils. The price of Good A is $2. The price of Good B is $5. If John wants to maximize his utility he should

• A) continue to purchase the same amount of Good A and Good B.
• B) increase the consumption of Good A and decrease the consumption of Good B.
• C) decrease the consumption of Good A and increase the consumption of Good B.
• D) decrease the consumption of Good A and decrease the consumption of Good B.

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Definitions:

Socioeconomic Status

A measure of an individual's or family's economic and social position relative to others, based on income, education, and occupation.

Popular Drug

A substance, legal or illegal, that is widely used or accepted within a culture or society for its psychoactive effects, often referring to medications or recreational drugs.

Dangerous

Describes something or someone that poses a threat to safety, health, or well-being.

Medical Establishment

The conglomerate of medical professionals, institutions, and organizations that dictate norms, practices, and policies within the healthcare system.