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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