Answer the Question on the Basis of the Following Marginal

question 247

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. What quantities of X and Y should be purchased to maximize utility?

• A) 2 of X and 1 of Y
• B) 4 of X and 5 of Y
• C) 2 of X and 5 of Y
• D) 2 of X and 6 of Y

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Definitions:

Deposits

Sums of money placed in accounts within financial institutions or as security for contracts, which might earn interest over time.

Indorsement

A signature or instruction written on the back of a negotiable instrument, such as a check, transferring ownership or specifying some other transaction.

Bank

A financial institution licensed to receive deposits and provide loans to individuals and businesses.

Holder

An individual or entity that possesses or owns a particular document, often used in the context of financial instruments.