Assume That a Consumer Purchases a Combination of Product a and Product

question 283

Multiple Choice

Assume that a consumer purchases a combination of product A and product B such that the MU ₐ /P ₐ = 8 and MU ᵦ /P ᵦ = 6. To maximize utility without spending more money, the consumer should

• A)purchase less of product A and more of product B.
• B)purchase more of product A and less of product B.
• C)purchase more of both product A and product B.
• D)make no change in purchases of products A and B.

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Definitions:

Minimum Cost

The least amount of financial expenditure required to achieve a particular objective, often essential for budgeting and financial planning.

Messenger

An individual or service that conveys messages or communicates information between parties.

Encoding

The process of converting information or data into a specific format for efficient processing, storage, or transmission.

Credibility

The quality or power of inspiring belief; the perceived reliability and trustworthiness of a source or message.