Assume a Consumer Purchases a Combination of Goods X and Y

question 68

Multiple Choice

Assume a consumer purchases a combination of goods X and Y such that MU_x / P_x = 20 units of utility per dollar and MU_y / P_y = 10 units of utility per dollar. To maximize utility, the consumers should buy:

• A) less of X and more of Y.
• B) less of both X and Y.
• C) more of both X and Y.
• D) more of X and less of Y.

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Definitions:

Safe Condition

Safe condition denotes an environment or situation that poses no risk of injury or harm to people.

Mishandling

Inappropriate or careless management, leading to damage or loss.

Harmful

Causing or potentially causing damage, injury, or negative effects to someone or something.

Make Goods

Products or services offered to compensate for a deficiency or to fulfill a previously unmet obligation.