Answer the Question on the Basis of the Following Marginal

question 78

Multiple Choice

Answer the question on the basis of the following marginal utility data for products X and Y. Assume that the prices of X and Y are $4 and $2, respectively, and that the consumer's income is $18. If the price of X decreases to $2, then the utility-maximizing combination of the two products is

• A)2 of X and 5 of Y.
• B)4 of X and 6 of Y.
• C)6 of X and 3 of Y.
• D)4 of X and 5 of Y.

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Definitions:

Convert

To change the form, character, or function of something to another state or type, often referring to assets or data transformation.

Stolen Bearer Instrument

A negotiable financial instrument that was unlawfully taken from its rightful owner and is payable to whoever holds the document.

Innocent

The state of being not guilty of a crime or other wrong act.

Negotiation

The process by which two or more parties engage in discussions to reach a mutually agreed-upon outcome.