Assume That a Consumer Purchases a Combination of Products Y

question 169

Multiple Choice

Assume that a consumer purchases a combination of products Y and Z and that the MU y/ Pᵧ = 48/8 and MU z/ P_z = 30/5. To maximize utility, without spending more money, the consumer should

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

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Definitions:

Sense of Self

The perception or consciousness of one's own identity and being.

Personal Relevance

The degree to which information or an event is pertinent to an individual's life and interests.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.

Confirmation Bias

The tendency to view events and people in ways that fit how we want and expect them to be.