Answer the Question on the Basis of the Following Marginal

question 94

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. $\begin{array}{c}\begin{array}{c}\text {Units}\\\underline{\text {of X }}\\1\\2\\3\\4\\5\\6\end{array}\begin{array}{c}\text {Marginal}\\\underline{\text {Utility, X}}\\20\\16\\12\\8\\6\\4\end{array}\begin{array}{c}\text {Units}\\\underline{\text {of Y }}\\1\\2\\3\\4\\5\\6\end{array}\begin{array}{c}\text {Marginal}\\\underline{\text {Utility, Y}}\\16\\14\\12\\10\\8\\6\end{array}\end{array}$
Refer to the data.Which of the following represents the demand schedule for X?

• A)
• \( \underline{P} \quad\quad\)\(\underline{Q_{d}}\)
• \( \$ 4 \quad\quad2\)
• 2\( \quad\quad 5\).
• B)
• \( \underline{P} \quad\quad\)\(\underline{Q_{d}}\)
• \( \$ 4 \quad\quad2\)
• 2\( \quad\quad 5\)
• C)
• \( \underline{P} \quad\quad\)\(\underline{Q_{d}}\)
• \( \$ 4 \quad\quad3\)
• 2\( \quad\quad 6\)
• D)
• \( \underline{P} \quad\quad\)\(\underline{Q_{d}}\)
• \( \$ 4 \quad\quad3\)
• 2\( \quad\quad 5\) .

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Definitions:

Competitive Equilibrium

A state in a market where supply equals demand, and no economic agent has the incentive to change their behavior, leading to an efficient allocation of resources.

Consumption Bundles

A combination of various goods and services that an individual consumes to derive satisfaction or utility.

Income

The amount of money received over a period of time, typically as payment for work, goods, or investments.

Cost of Living

The amount of money needed to sustain a certain standard of living by affording basic expenses such as housing, food, taxes, and healthcare.