If a Consumer Purchases a Combination of Commodities a and B

question 213

Multiple Choice

If a consumer purchases a combination of commodities a and b such that MUₐ/Pₐ = 40 and MUb/Pb = 60, to maximize utility, the consumer should buy:

• A) less of both a and b.
• B) less of a and more of b.
• C) more of both a and b.
• D) more of a and less of b.

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Definitions:

Monarchs

Heads of state who are the reigning sovereigns of a monarchy, ruling until death or abdication.

Divine Right

The doctrine that kings and queens have a God-given right to rule and that rebellion against them is a sin.

Encyclopedia

A comprehensive reference work containing articles on a wide range of subjects or on numerous aspects of a particular field, usually arranged alphabetically.

Diderot

A French philosopher, art critic, and writer, best known for being a co-founder, chief editor, and contributor to the Encyclopédie, one of the principal works of the Age of Enlightenment.