Answer the Question Based on the Table Below Showing the Marginal

question 38

Multiple Choice

Answer the question based on the table below showing the marginal utility schedules for product X and product Y for a hypothetical consumer. The price of product X is $3, and the price of product Y is $2. The income of the consumer is $15. If the consumer buys both product X and product Y, how much will the consumer buy of each in order to maximize utility?

• A)4X and 2Y
• B)3X and 3Y
• C)2X and 4Y
• D)1X and 5Y

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Definitions:

Implied Warranty

A guarantee that is not written or spoken but is understood and legally binding, ensuring goods or services meet certain standards of quality and reliability.

Implied Warranty

A legal presumption that a product will fulfill the basic functions for which it was sold, without being explicitly stated by the seller.

Merchantability

Concerns the basic standard of quality and functionality that goods sold must meet, implying they are fit for the general purpose for which they are sold.

Fitness

A state of health and well-being, often focused on the ability to perform physical activities or meet specific physical criteria.