Assume That a Consumer Purchases a Combination of Products Y

question 157

Multiple Choice

Assume that a consumer purchases a combination of products Y and Z and that the MUy/Py = 30/2 and MUz/Pz = 45/3.To maximize utility, without spending more money, the consumer should

• A)purchase less of Y and more of Z.
• B)purchase more of Y and less of Z.
• C)purchase more of both Y and Z.
• D)make no change in the quantities of Y and Z.

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Definitions:

Tangible Asset

Assets that have physical substance and can be touched, such as machinery, buildings, and land.

Inventory

A complete list or stock of goods and materials held by a business to meet customer demand.

Tangible Assets

Assets that have a physical form such as property, plant, and equipment.

Past Earnings

The historical profits or net income that a company has generated over a specific period, often used as an indicator of financial health and operational success.