Assume That a Consumer Purchases a Combination of Products Y

question 127

Multiple Choice

Assume that a consumer purchases a combination of products Y and Z and that the MUy/P_y = 25 and MUz/P_z = 20. To maximize utility, without spending more money, the consumer should

• A) purchase less of Y and more of Z.
• B) purchase more of Y and less of Z.
• C) purchase more of both Y and Z.
• D) make no change in the quantities Y and Z.

---

Definitions:

Consolidated Income Tax Return

A single income tax return filed by a parent company that includes all incomes, deductions, and credits of all members of a corporate group.

Intra-entity Transfers

Transactions of assets, services, or funds between divisions, departments, or units within the same entity.

Voting Stock

Stocks that grant the holder voting power regarding corporate governance and the selection of the board of directors.

Foreign Corporation

A company that is incorporated in one country but conducts business operations in another country.