Joanna Is Deciding Between Consuming Good X and Good Y

question 54

Multiple Choice

Joanna is deciding between consuming Good X and Good Y.At her current level of consumption,her marginal utility per dollar for Good X is greater than the marginal utility per dollar for Good Y.To achieve the consumer optimum,Joanna needs to

• A) consume more of Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• B) consume more of Good X until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• C) consume more of both Good X and Good Y until the marginal utility per dollar for Good Y is greater than the marginal utility for Good X.
• D) consume more of Good X or less of Good Y until the marginal utility per dollar for Good X and Good Y is equal.
• E) continue at her current level of consumption.

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Definitions:

UCC

Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.

Common Law

A legal system based on customs and court rulings, as opposed to statutory laws enacted by a legislative body.

Predominant Purpose

The main intent or objective behind a contract or transaction, often used to interpret the nature of the agreement.

Auto-parts Manager

A professional responsible for overseeing the operations and inventory of an auto-parts store or department.