Consumer's Income = $12 Refer to the Data for a Utility-Maximizing Consumer

question 59

Multiple Choice

Consumer's income = $12 $$\begin{array}{l}\begin{array} { c c c c } \begin{array} { c } \\\text { Units of } \\\text { Product }\\\hline\end{array} & \begin{array} { c } \\\text { Marginal Utility, X } \\( \text { Price } = \$ 1 ) \\\hline\end{array} & \begin{array} { c } \\\text { Marginal Utility, Y } \\( \text { Price } = \$ 1 ) \\\hline\end{array} & \begin{array} { c } \text { Marginal Utility, }\\\text { New Product, Z } \\( \text { Price } = \$ 1 ) \\\hline\end{array} \\ \text { First } & 12 & 16 & 20 \\\text { Second } & 10 & 14 & 18 \\\text { Third } & 8 & 12 & 16 \\\text { Fourth } & 6 & 10 & 14 \\\text { Fifth } & 4 & 8 & 12 \\\text { Sixth } & 2 & 6 & 10 \\\text { Seventh } & 0 & 4 & 8\end{array}\end{array}$$ Refer to the data for a utility-maximizing consumer.Assume that new product Z doesn't exist.How many units of X and Y will this consumer buy,given his or her $12 budget?

• A) 5 of X and 7 of Y.
• B) 7 of X and 5 of Y.
• C) 6 of X and 6 of Y.
• D) 5 of X and 6 of Y.

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Definitions:

Double approach-avoidance

A psychological conflict involving two goals or situations, each possessing both attractive (approach) and repulsive (avoidance) aspects, making decision-making more complex.

Double approach-avoidance

A psychological conflict that involves making a decision between two options, both of which have positive and negative elements to consider.

Avoidance-avoidance

A conflict involving a choice between two equally undesirable outcomes, leading to stress and difficulty in decision-making.

Approach-approach

A conflict situation where an individual has to choose between two attractive options or goals.