Suppose That a Consumer Is Currently Spending All of Her

question 82

Multiple Choice

Suppose that a consumer is currently spending all of her income on 10 units of good A and 5 units of good B.The price of good A is $4 per unit,the price of good B is $10 per unit,the marginal utility of the last unit of good A consumed is 20,and the marginal utility of the last unit of good B consumed is 60.If the consumer wants to maximize her utility from consuming the two goods,she should

• A) consume more of good B and less of good A.
• B) consume more of good A and less of good B.
• C) continue to consume 10 units of good A and 5 units of good B.
• D) consume more of both goods.

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Definitions:

Frontal Eye

In art, refers to the stylized representation of an eye seen in profile, but with the iris and pupil depicted as if viewed from the front.

Profile Head

An artistic representation of a person's face from the side view, commonly found in various forms of art to focus on facial features and expressions.

Mesopotamia

An ancient region located in the eastern Mediterranean, roughly comprising modern-day Iraq, Kuwait, and parts of Syria, Turkey, and Iran, known as one of the cradles of civilization where writing, agriculture, and cities first arose.

Palace At Knossos

An archaeological site on the island of Crete, considered Europe’s oldest city, and the ceremonial and political center of the Minoan civilization.